Amended in Senate June 16, 2016

Amended in Senate September 4, 2015

Amended in Senate July 7, 2015

California Legislature—2015–16 Regular Session

Assembly BillNo. 701


Introduced by Assemblybegin delete Memberend deletebegin insert Membersend insert Cristina Garciabegin insert and Eggmanend insert

begin insert

(Coauthors: Assembly Members Bonilla, Bonta, Gatto, Gipson, Gomez, Lopez, and Williams)

end insert
begin insert

(Coauthors: Senators Beall and Leyva)

end insert

February 25, 2015


An act to amend Sectionsbegin delete 19817 and 19858 of the Business and Professionsend deletebegin insert 261, 261.5, 262, and 266c of the Penalend insert Code, relating tobegin delete gaming.end deletebegin insert sex crimes.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 701, as amended, Cristina Garcia. begin deleteGaming. end deletebegin insertSex crimes: Rape.end insert

begin insert

Existing law defines rape and spousal rape as an act of sexual intercourse accomplished under specified circumstances indicating lack of consent, force, or duress, as specified. Existing law defines unlawful sexual intercourse as an act of sexual intercourse with a person who is a minor, as specified. Existing law additionally makes it unlawful to induce a person to engage in sexual intercourse, sexual penetration, oral copulation, or sodomy when his or her consent is procured by false or fraudulent representation or pretense that is made with the intent to create fear, and which does induce fear, and that would cause a reasonable person in like circumstances to act contrary to the person’s free will, and does cause the victim to so act.

end insert
begin insert

This bill would change the definition of rape, spousal rape, and unlawful sexual intercourse to instead mean penetration, no matter how slight, of the vagina or anus with any body part or object, or oral penetration by a sex organ of another person, under the specified conditions. The bill would also make it a crime to induce another person to engage in penetration, no matter how slight, of the vagina or anus with any body part or object, or oral penetration by a sex organ of another person, when his or her consent is procured by false or fraudulent representation or pretense that is made with the intent to create fear, and which does induce fear, and that would cause a reasonable person in like circumstances to act contrary to the victim’s free will, and does cause the victim to so act. By expanding the definition of a crime, this bill would impose a state-mandated local program.

end insert
begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert
begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert
begin delete

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. A willful violation of any provision of the act for which a penalty is not expressly provided, is punishable as a misdemeanor. Existing law requires the commission to establish a 10-member Gaming Policy Advisory Committee for the purpose of discussing matters of controlled gambling regulatory policy and other relevant gambling-related issues. The committee is composed of representatives of controlled gambling licensees and members of the general public in equal numbers.

end delete
begin delete

This bill would increase the membership of the committee from 10 to 12 members, and would instead require the committee to be composed of 5 representatives of controlled gambling licensees, 5 members of the general public, and 2 representatives from the Department of Justice.

end delete
begin delete

Under the act, a person is deemed unsuitable to hold a license to own a gambling establishment if the person, or any partner, officer, director, or shareholder of the person, has any financial interest in any business or organization that is engaged in a prohibited form of gambling, whether within or without this state, except as specified.

end delete
begin delete

This bill would exempt from that provision a person or entity that has (1) held a license in good standing as an owner of a gambling establishment for at least 5 years as of January 1, 2015, (2) has notified the California Gambling Control Commission and the Department of Justice, has received commission approval, after completion of a background check conducted by the department, to obtain a financial interest in a business or organization within the United States that conducts lawful gambling outside of California that, if conducted within California, would be unlawful, (3) and has paid the commission and the department for the reasonable costs of the investigation and approval for obtaining the financial interest. The bill would require the commission to adopt necessary regulations addressing, at a minimum, mandatory periodic reporting to the department by a licensee regarding the ownership and operations of a business or organization within the United States that conducts lawful gambling outside of California that, if conducted in California, would be unlawful.

end delete
begin delete

The bill would make it unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization within the United States that conducts lawful gambling outside of California that, if conducted within California, would be unlawful, and the gambling establishment, as described. The bill would prohibit, among other things, a licensee, in connection with a business or organization that conducts lawful gambling outside of California that, if conducted within California, would be unlawful, from knowingly engaging in an activity or entering into an association that is unsuitable for the licensee because that activity or association poses an unreasonable threat to the control of gambling in this state. By creating a new crime, this bill would impose a state-mandated local program.

end delete
begin delete

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end delete
begin delete

This bill would provide that no reimbursement is required by this act for a specified reason.

end delete

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

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 261 of the end insertbegin insertPenal Codeend insertbegin insert is amended to
2read:end insert

P4    1

261.  

(a) Rape is an act ofbegin delete sexual intercourseend deletebegin insert penetration, no
2matter how slight, of the vagina or anus with any body part or
3object, or oral penetration by a sex organ of another person,end insert

4 accomplished with a person not the spouse of thebegin delete perpetrator,end delete
5begin insert defendant,end insert under any of the following circumstances:

6(1) begin deleteWhere a person end deletebegin insertIf the victim end insertis incapable, because of a mental
7disorder or developmental or physical disability, of giving legal
8consent, and this is known or reasonably should be known to the
9begin delete person committing the act.end deletebegin insert defendant.end insert Notwithstanding the
10existence of a conservatorship pursuant tobegin delete the provisions ofend delete the
11Lanterman-Petris-Short Act (Part 1 (commencing with Section
125000) of Division 5 of the Welfare and Institutions Code), the
13prosecuting attorney shall prove, as an element of the crime, that
14a mental disorder or developmental or physical disability rendered
15thebegin delete allegedend delete victim incapable of giving consent.

16(2) begin deleteWhere it end deletebegin insertIf the act end insertis accomplished againstbegin delete a person’send deletebegin insert the
17victim’send insert
will by means of force, violence, duress, menace, or fear
18of immediate and unlawful bodily injury on thebegin delete personend deletebegin insert victimend insert or
19another.

20(3) begin deleteWhere a person end deletebegin insertIf the victim end insertis prevented from resisting by
21any intoxicating or anesthetic substance, or any controlled
22substance, and this condition was known, or reasonably should
23have been known by thebegin delete accused.end deletebegin insert defendant.end insert

24(4) begin deleteWhere a person end deletebegin insertIf the victim end insertis at the time unconscious of
25the nature of the act, and this is known to thebegin delete accused.end deletebegin insert defendant.end insert
26 As used in this paragraph, “unconscious of the nature of the act”
27means incapable of resisting because the victim meets any one of
28the following conditions:

29(A) Was unconscious or asleep.

30(B) Was not aware, knowing, perceiving, or cognizant that the
31act occurred.

32(C) Was not aware, knowing, perceiving, or cognizant of the
33essential characteristics of the act due to thebegin delete perpetrator’send delete
34begin insert defendant’send insert fraud in fact.

35(D) Was not aware, knowing, perceiving, or cognizant of the
36essential characteristics of the act due to thebegin delete perpetrator’send delete
37begin insert defendant’send insert fraudulent representation that the sexual penetration
38served a professional purpose when it served no professional
39purpose.

P5    1(5) begin deleteWhere a person end deletebegin insertIf a victim end insertsubmits under the belief that the
2person committing the act is someone known to the victim other
3than thebegin delete accused,end deletebegin insert defendant,end insert and this belief is induced by any
4artifice, pretense, or concealment practiced by thebegin delete accused,end delete
5begin insert defendant,end insert with intent to induce the belief.

6(6) begin deleteWhere end deletebegin insertIf end insertthe act is accomplished against the victim’s will
7by threatening to retaliate in the future against the victim or any
8other person, and there is a reasonable possibility that the
9begin delete perpetratorend deletebegin insert defendantend insert will execute the threat. As used in this
10paragraph, “threatening to retaliate” means a threat to kidnap or
11falsely imprison, or to inflict extreme pain, serious bodily injury,
12or death.

13(7) begin deleteWhere end deletebegin insertIf end insertthe act is accomplished against the victim’s will
14by threatening to use the authority of a public official to incarcerate,
15arrest, or deport the victim or another, and the victim has a
16reasonable belief that thebegin delete perpetratorend deletebegin insert defendantend insert is a public official.
17As used in this paragraph, “public official” means a person
18employed by a governmental agency who has the authority, as part
19of that position, to incarcerate, arrest, or deport another. The
20begin delete perpetratorend deletebegin insert defendantend insert does not actually have to be a public official.

21(b) As used in this section, “duress” means a direct or implied
22threat of force, violence, danger, or retribution sufficient to coerce
23a reasonable person of ordinary susceptibilities to perform an act
24which otherwise would not have been performed, or acquiesce in
25an act to which one otherwise would not have submitted. The total
26circumstances, including the age of the victim, and his or her
27relationship to the defendant, are factors to consider in appraising
28the existence of duress.

29(c) As used in this section, “menace” means any threat,
30declaration, or act which shows an intention to inflict an injury
31upon another.

32begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 261.5 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

33

261.5.  

(a) Unlawful sexual intercourse is an act ofbegin delete sexual
34intercourseend delete
begin insert penetration, no matter how slight, of the vagina or
35anus with any body part or object, or oral penetration by a sex
36organ of another person,end insert
accomplished with a person who is not
37the spouse of thebegin delete perpetrator,end deletebegin insert defendant,end insert if the person is a minor.
38For the purposes of this section, a “minor” is a person under begin delete the
39age ofend delete
18 yearsbegin insert of ageend insert and an “adult” is a person who is at least
4018 years of age.

P6    1(b) begin deleteAny person end deletebegin insertA defendant end insertwho engages in an act of unlawful
2sexual intercourse with a minor who is not more than three years
3older or three years younger than thebegin delete perpetrator,end deletebegin insert defendant,end insert is
4guilty of a misdemeanor.

5(c) begin deleteAny end deletebegin insertA end insertperson who engages in an act of unlawful sexual
6intercourse with a minor who is more than three years younger
7than thebegin delete perpetratorend deletebegin insert defendantend insert is guilty of either a misdemeanor
8or a felony, and shall be punished by imprisonment in a county
9jail not exceeding one year, or by imprisonment pursuant to
10subdivision (h) of Section 1170.

11(d) begin deleteAny end deletebegin insertA end insertperson 21 years of age or older who engages in an
12act of unlawful sexual intercourse with a minor who is under 16
13years of age is guilty of either a misdemeanor or a felony, and shall
14be punished by imprisonment in a county jail not exceeding one
15year, or by imprisonment pursuant to subdivision (h) of Section
161170 for two, three, or four years.

17(e) (1) Notwithstanding any other provision of this section, an
18adult who engages in an act ofbegin insert unlawfulend insert sexual intercourse with a
19minor in violation of this section may be liable for civil penalties
20in the following amounts:

21(A) An adult who engages in an act of unlawful sexual
22intercourse with a minor less than two years younger than the adult
23is liable for a civil penalty not to exceed two thousand dollars
24($2,000).

25(B) An adult who engages in an act of unlawful sexual
26intercourse with a minor at least two years younger than the adult
27is liable for a civil penalty not to exceed five thousand dollars
28($5,000).

29(C) An adult who engages in an act of unlawful sexual
30intercourse with a minor at least three years younger than the adult
31is liable for a civil penalty not to exceed ten thousand dollars
32($10,000).

33(D) An adult over the age of 21 years who engages in an act of
34unlawful sexual intercourse with a minor under 16 years of age is
35liable for a civil penalty not to exceed twenty-five thousand dollars
36($25,000).

37(2) The district attorney may bring actions to recover civil
38penalties pursuant to this subdivision. From the amounts collected
39for each case, an amount equal to the costs of pursuing the action
40shall be deposited with the treasurer of the county in which the
P7    1judgment was entered, and the remainder shall be deposited in the
2Underage Pregnancy Prevention Fund, which is hereby created in
3the State Treasury. Amounts deposited in the Underage Pregnancy
4Prevention Fund may be used only for the purpose of preventing
5underage pregnancy upon appropriation by the Legislature.

6(3) In addition to any punishment imposed under this section,
7the judge may assess a fine not to exceed seventy dollars ($70)
8againstbegin delete anyend deletebegin insert aend insert person who violates this section with the proceeds
9of this fine to be used in accordance with Section 1463.23. The
10courtbegin delete shall, however,end deletebegin insert shallend insert take into consideration the defendant’s
11ability to pay, andbegin delete noend deletebegin insert aend insert defendant shallbegin insert notend insert be denied probation
12because of his or her inability to pay the fine permitted under this
13subdivision.

14begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 262 of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

15

262.  

(a) Rape of a person who is the spouse of thebegin delete perpetratorend delete
16begin insert defendantend insert is an act ofbegin delete sexual intercourseend deletebegin insert penetration, no matter
17how slight, of the vagina or anus with any body part or object, or
18oral penetration by a sex organ of another person,end insert
accomplished
19under any of the following circumstances:

20(1) begin deleteWhere it end deletebegin insertIf the acend insertbegin insertt end insertis accomplished against abegin delete person’send delete
21begin insert victim’send insert will by means of force, violence, duress, menace, or fear
22of immediate and unlawful bodily injury on thebegin delete personend deletebegin insert victimend insert or
23another.

24(2) begin deleteWhere end deletebegin insertIf end insertabegin delete personend deletebegin insert victimend insert is prevented from resisting by any
25intoxicating or anesthetic substance, or any controlled substance,
26and this condition was known, or reasonably should have been
27known, by thebegin delete accused.end deletebegin insert defendant.end insert

28(3) begin deleteWhere end deletebegin insertIf end insertabegin delete person isend deletebegin insert victim is,end insert at thebegin delete timeend deletebegin insert time,end insert unconscious
29of the nature of the act, and this is known to thebegin delete accused.end deletebegin insert defendant.end insert
30 As used in this paragraph, “unconscious of the nature of the act”
31means incapable of resisting because the victim meets one of the
32following conditions:

33(A) Was unconscious or asleep.

34(B) Was not aware, knowing, perceiving, or cognizant that the
35act occurred.

36(C) Was not aware, knowing, perceiving, or cognizant of the
37essential characteristics of the act due to thebegin delete perpetrator’send delete
38begin insert defendant’send insert fraud in fact.

39(4) begin deleteWhere end deletebegin insertIf end insertthe act is accomplished against the victim’s will
40by threatening to retaliate in the future against the victim or any
P8    1other person, and there is a reasonable possibility that the
2begin delete perpetratorend deletebegin insert defendantend insert will execute the threat. As used in this
3paragraph, “threatening to retaliate” means a threat to kidnap or
4falsely imprison, or to inflict extreme pain, serious bodily injury,
5or death.

6(5) begin deleteWhere end deletebegin insertIf end insertthe act is accomplished against the victim’s will
7by threatening to use the authority of a public official to incarcerate,
8arrest, or deport the victim or another, and the victim has a
9reasonable belief that thebegin delete perpetratorend deletebegin insert defendantend insert is a public official.
10As used in this paragraph, “public official” means a person
11employed by a governmental agency who has the authority, as part
12of that position, to incarcerate, arrest, or deport another. The
13begin delete perpetratorend deletebegin insert defendantend insert does not actually have to be a public official.

14(b) As used in this section, “duress” means a direct or implied
15threat of force, violence, danger, or retribution sufficient to coerce
16a reasonable person of ordinary susceptibilities to perform an act
17 which otherwise would not have been performed, or acquiesce in
18an act to which one otherwise would not have submitted. The total
19circumstances, including the age of thebegin delete victim,end deletebegin insert victimend insert and his or
20her relationship to the defendant, are factors to consider in
21apprising the existence of duress.

22(c) As used in this section, “menace” means any threat,
23declaration, or act that shows an intention to inflict an injury upon
24another.

25(d) If probation is granted upon conviction of a violation of this
26section, the conditions of probation may include, in lieu of a fine,
27one or both of the following requirements:

28(1) That the defendant make payments to a battered women’s
29shelter, up to a maximum of one thousand dollars ($1,000).

30(2) That the defendant reimburse the victim for reasonable costs
31of counseling and other reasonable expenses that the court finds
32are the direct result of the defendant’s offense.

33For any order to pay a fine, make payments to a battered
34women’s shelter, or pay restitution as a condition of probation
35under this subdivision, the court shall make a determination of the
36defendant’s ability to pay. In no event shall any order to make
37payments to a battered women’s shelter be made if it would impair
38the ability of the defendant to pay direct restitution to the victim
39or court-ordered child support.begin delete Whereend deletebegin insert Ifend insert the injury to a married
40person is caused in whole or in part by the criminal acts of his or
P9    1her spouse in violation of this section, the community property
2may not be used to discharge the liability of the offending spouse
3for restitution to the injured spouse, required by Section 1203.04,
4as operative on or before August 2, 1995, or Section 1202.4, or to
5a shelter for costs with regard to the injured spouse and dependents,
6required by this section, until all separate property of the offending
7spouse is exhausted.

8begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 266c of the end insertbegin insertPenal Codeend insertbegin insert is amended to read:end insert

9

266c.  

begin insert(a)end insertbegin insertend insert Every person who induces any other person to
10engage inbegin delete sexual intercourse, sexual penetration, oral copulation,
11or sodomyend delete
begin insert penetration, no matter how slight, of the vagina or anus
12with any body part or object, or oral penetration by a sex organ
13of another person,end insert
whenbegin delete his or herend deletebegin insert the victim’send insert consent is procured
14by false or fraudulent representation or pretense that is made with
15the intent to create fear, and which does induce fear, and that would
16cause a reasonable person in like circumstances to act contrary to
17the person’s free will, and does cause the victim to so act, is
18punishable by imprisonment in a county jail for not more than one
19year or in the state prison for two, three, or four years.

begin delete

20 As

end delete

21begin insert(b)end insertbegin insertend insertbegin insertAsend insert used in this section, “fear” means the fear of physical
22injury or death to thebegin delete personend deletebegin insert victimend insert or to any relative of thebegin delete personend delete
23begin insert victimend insert or member of thebegin delete person’send deletebegin insert victim’send insert family.

24begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

No reimbursement is required by this act pursuant to
25Section 6 of Article XIII B of the California Constitution because
26the only costs that may be incurred by a local agency or school
27district will be incurred because this act creates a new crime or
28infraction, eliminates a crime or infraction, or changes the penalty
29for a crime or infraction, within the meaning of Section 17556 of
30the Government Code, or changes the definition of a crime within
31the meaning of Section 6 of Article XIII B of the California
32Constitution.

end insert
begin delete
33

SECTION 1.  

Section 19817 of the Business and Professions
34Code
is amended to read:

35

19817.  

The commission shall establish and appoint a Gaming
36Policy Advisory Committee of 12 members. The committee shall
37be composed of five representatives of controlled gambling
38licensees, five members of the general public, and two members
39from the department. The executive director shall, from time to
40time, convene the committee for the purpose of discussing matters
P10   1of controlled gambling regulatory policy and any other relevant
2gambling-related issue. The recommendations concerning gambling
3policy made by the committee shall be presented to the
4commission, but shall be deemed advisory and not binding on the
5commission in the performance of its duties or functions. The
6committee may not advise the commission on Indian gaming.

7

SEC. 2.  

Section 19858 of the Business and Professions Code
8 is amended to read:

9

19858.  

(a) Except as provided in subdivisions (b), (c), and (g),
10a person shall be deemed to be unsuitable to hold a state gambling
11license to own a gambling establishment if the person, or any
12partner, officer, director, or shareholder of the person, has any
13financial interest in any business or organization that is engaged
14in any form of gambling prohibited by Section 330 of the Penal
15Code, whether within or without this state.

16(b) Subdivision (a) does not apply to a publicly traded racing
17association, a qualified racing association, or any person who is
18licensed pursuant to subdivision (b) or (c) of Section 19852.

19(c) Subdivision (a) does not apply to a person or entity that
20meets all of the following criteria:

21(1) Holds a license in good standing as an owner of a gambling
22establishment pursuant to this chapter for at least five years as of
23January 1, 2015. For purposes of this subdivision, “good standing”
24means that the owner’s state gambling license is not the subject
25of outstanding allegations by the department for any violation of
26the Gambling Control Act.

27(2) Has notified the commission and the department and received
28commission approval, after completion of a background check
29conducted by the department, to obtain a financial interest in
30another business or organization within the United States that
31conducts lawful gambling outside of California that, if conducted
32within California, would be unlawful. A licensee shall provide the
33department with any information pertaining to the licensee’s
34proposed participation in that business or organization as the
35department may request. The commission shall not grant a
36temporary approval under this section.

37(3) Has paid the commission and the department for the
38reasonable costs incurred by the commission and the department
39for the investigation and approval to obtain the financial interest
40described in paragraph (2).

P11   1(d) It is unlawful for any cross-promotion or marketing to occur
2between the business or organization described in paragraph (2)
3of subdivision (c) and the gambling establishment described in
4paragraph (1) of subdivision (c). For purposes of this subdivision,
5“cross-promotion or marketing” means the offering to any
6customers of the gambling establishment anything of value related
7to visiting or gambling at the business or organization described
8in paragraph (2) of subdivision (c).

9(e) A licensee shall not, in connection with a business or
10organization described in paragraph (2) of subdivision (c),
11knowingly do any of the following:

12(1) Violate a foreign, federal, tribal, state, county, city, or
13township law, regulation, ordinance, or rule, or any equivalent
14thereof, concerning the conduct of gambling.

15(2) Fail to conduct the operation in accordance with the
16standards of honesty and integrity required for gambling in this
17state.

18(3) Engage in an activity or enter into an association that is
19unsuitable for a licensee because that activity or association does
20any of the following:

21(A) Poses an unreasonable threat to the control of gambling in
22this state.

23(B) Reflects or tends to reflect discredit or disrepute upon this
24state or gaming in this state.

25(C) Is contrary to the public policy of this state concerning
26gaming.

27(4) Engage in an activity or enter into an association that
28interferes with the ability of this state to collect all license fees
29imposed by this chapter.

30(5) Employ, contract with, or associate with, a person whom
31the commission has found guilty of cheating or to whom the
32commission has denied a gambling license, or finding of suitability,
33on the ground of unsuitability.

34(f) The commission shall adopt necessary regulations addressing,
35at a minimum, mandatory periodic reporting to the department by
36a licensee regarding the ownership and operations of a business
37or organization described in paragraph (2) of subdivision (c).

38(g) Subdivision (a) does not apply to a person who meets all of
39the following criteria:

P12   1(1) The person is licensed or had an application to be licensed
2on file with the commission on or before February 1, 2013.

3(2) The person has a financial interest in a business or
4organization engaged in gambling prohibited by Section 330 of
5the Penal Code that was closed and was not engaged in prohibited
6gambling at the time the person was either licensed or had filed
7an application to be licensed with the commission.

8(3) The person has a financial interest in a gambling
9establishment that is located on any portion of, or contiguous to,
10the grounds on which a racetrack is or had been previously located
11and horserace meetings were authorized to be conducted by the
12California Horse Racing Board on or before January 1, 2012.

13(4) The grounds upon which the gambling establishment
14described in paragraph (3) is located are directly or indirectly
15owned by a racetrack limited partnership owner. For purposes of
16this paragraph, a “racetrack limited partnership owner” is defined
17as a limited partnership, or a number of related limited partnerships,
18that is or are at least 80 percent capitalized by limited partners that
19are an “institutional investor” as defined in subdivision (w) of
20Section 19805, an “employee benefit plan” as defined in Section
211002(3) of Title 29 of the United States Code, or an investment
22company that manages a state university endowment.

23(h) Within three years of the date the closed business or
24organization reopens or becomes engaged in any form of gambling
25prohibited by Section 330 of the Penal Code, a person described
26in subdivision (g) shall either divest that person’s interest in the
27business or organization, or divest that person’s interest in the
28gambling enterprise or gambling establishment for which the
29person is licensed or has applied to be licensed by the commission.

30(i) A person described in subdivision (g) shall inform the
31commission within 30 days of the date on which a business or
32organization in which the person has a financial interest begins to
33engage in any form of gambling prohibited by Section 330 of the
34Penal Code.

35(j) During the three-year divestment period described in
36subdivision (h), it is unlawful for any cross-promotion or marketing
37to occur between the business or organization that is engaged in
38any form of gambling prohibited by Section 330 of the Penal Code
39and the gambling enterprise or gambling establishment described
40in paragraph (3) of subdivision (g). For purposes of this
P13   1subdivision, “cross-promotion or marketing” means the offering
2to any customers of the gambling enterprise or gambling
3establishment anything of value related to visiting or gambling at
4the business or organization engaged in any form of gambling
5prohibited by Section 330 of the Penal Code.

6(k) During the three-year divestment period described in
7subdivision (h), any funds used in connection with the capital
8improvement of the gambling enterprise or gambling establishment
9described in paragraph (3) of subdivision (g) shall not be provided
10from the gaming revenues of either the business or organization
11engaged in gaming prohibited under Section 330 of the Penal Code.

12(l) If, at the end of the three-year divestment period described
13in subdivision (h), any person described in subdivision (g) has not
14divested his or her interest in either the gambling enterprise or
15gambling establishment or the business or organization engaged
16in any form of gaming prohibited under Section 330 of the Penal
17Code, the prohibitions of Section 19858 as it read on January 1,
182013, apply.

19

SEC. 3.  

No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.

end delete


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