BILL ANALYSIS Ó AB 431 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 431 (Gray) - As Amended May 4, 2015 ----------------------------------------------------------------- |Policy |Governmental Organization |Vote:|20 - 0 | |Committee: | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill declares the intent of the Legislature to authorize Internet poker in California and adopt a legal and regulatory framework that complies with federal law. The bill declares the framework shall include strict standards to ensure the fairness and integrity of the games, appropriate consumer protections, fair revenue for the state, safeguards against underage play, and mechanisms to address negative impacts of Internet poker gambling. FISCAL EFFECT: AB 431 Page 2 Substantial costs, likely in the tens of millions of dollars annually to the General and Special Funds, to several agencies including the Gambling Control Commission, Department of Justice, Franchise Tax Board, law enforcement, child welfare services, and others, to develop regulations and standards, monitor, and enforce the framework around Internet poker. Over time, some or all of those costs may be offset through licensing and fee revenue. COMMENTS: Purpose. According to the author, the intent of this bill is to assist the Legislature to further consider a legislative framework to authorize intrastate Internet poker. The author claims over a million Californians are playing Internet poker on sites run by offshore companies that are not regulated or licensed by any US government entity. Analysis Prepared by:Joel Tashjian / APPR. / (916) 319-2081 AB 431 Page 3