BILL NUMBER: AB 431	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 4, 2015

INTRODUCED BY   Assembly Member Gray
   (Principal coauthor: Senator Hall)

                        FEBRUARY 19, 2015

   An act to add Chapter 5.2 (commencing with Section 19990.101) to
Division 8 of the Business and Professions Code, relating to
gambling.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 431, as amended, Gray. Gambling: Internet poker.
   Existing law, 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.
   This bill would  authorize the operation of an Internet
poker Web site within the borders of the state. The bill would
require the commission, in consultation with the department, to
promulgate regulations for intrastate Internet poker. The bill would
require those regulations to include, but not be limited to, a
licensing process for an individual or entity to become an operator
of an Internet poker Web site and rules for the operation of an
Internet poker Web site.   declare the Legislature's
intent regarding the authorization of Internet poker within the
borders of the state. The bill would require the Legislature, among
other things, to include consumer protections for Californians in any
Internet poker framework that may be adopted by the Legislature to
authorize Internet poker in the state, to ensure that framework
provides a fair share of revenue for the state, and to include strict
standards in that framework to ensure that the Internet poker games
are fair. The bill would also make related legislative findings and
declarations. 
   Vote: majority. Appropriation: no. Fiscal committee:  yes
  no  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares both of the
following:
   (a) In October 2006, the United States Congress passed the
Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) (31 U.S.C.
Secs. 5361 et seq.), which generally prohibits the use of banking
instruments, including credit cards, checks, and fund transfers, for
interstate Internet gambling.
   (b) UIGEA essentially prohibits online gambling by United States
citizens, but includes exceptions that permit individual states to
create a regulatory framework to enable intrastate Internet gambling,
if the bets or wagers are made exclusively within a single state
under certain circumstances.
  SEC. 2.  Chapter 5.2 (commencing with Section 19990.101) is added
to Division 8 of the Business and Professions Code, to read:
      CHAPTER 5.2.  AUTHORIZED INTRASTATE INTERNET POKER



      Article 1.  General Provisions


   19990.101.   An Internet poker Web site authorized
pursuant to this chapter may be operated within the borders of the
state   (a)     It is the intent of
the Legislature that any Internet poker framework that may be adopted
by the Legislature to authorize Internet poker in the state 
 be developed  in accordance with all applicable laws and
regulations, including, but not limited to, the Unlawful Internet
Gambling Enforcement Act of 2006 (31 U.S.C. Secs. 5361 et seq.). 

   (b) Any Internet poker framework shall contain consumer
protections for Californians who seek to engage in a legal
alternative to unlawful Internet poker, ensure a fair share of
revenue for the state, and protect the public interest by ensuring
that the various aspects of Internet poker are sanctioned and
regulated by the state. The framework shall also provide mechanisms
to address the negative impacts of Internet poker gambling and seek
to provide economic benefits to California's economy.  
   (c) A framework shall also include strict standards to ensure that
the Internet poker games are fair, operated by qualified entities,
and are played by persons of legal age who are located in California,
using technologies to identify and restrict access by minors. 


      Article 2.  Definitions


   19990.201.  For purposes of this chapter, the following
definitions apply:
   (a) "Commission" means the California Gambling Control Commission.

   (b) "Department" means the Department of Justice. 


      Article 3.  Administration


   19990.301.  The commission, in consultation with the department,
shall promulgate regulations for intrastate Internet poker. These
regulations shall include, but not be limited to, both of the
following:
   (a) A licensing process for an individual or entity to become an
operator of an Internet poker Web site.
   (b) Rules for the operation of an Internet poker Web site.