BILL NUMBER: AB 701	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 16, 2016
	AMENDED IN SENATE  SEPTEMBER 4, 2015
	AMENDED IN SENATE  JULY 7, 2015

INTRODUCED BY   Assembly  Member   Cristina
Garcia   Members   Cristina Garcia  
and Eggman 
    (   Coauthors:   Assembly Members 
 Bonilla,   Bonta,   Gatto,   Gipson,
  Gomez,   Lopez,   and Williams 
 ) 
    (   Coauthors:   Senators   Beall
  and Leyva   ) 

                        FEBRUARY 25, 2015

   An act to amend Sections  19817 and 19858 of the Business
and Professions   261, 261.5, 262, and 266c of the Penal
 Code, relating to  gaming.   sex crimes.




	LEGISLATIVE COUNSEL'S DIGEST


   AB 701, as amended, Cristina Garcia.  Gaming. 
 Sex crimes: Rape.  
   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.  
   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.  
   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.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   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.  
   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.  
   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.
 
   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.  
   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.  
   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.  
   This bill would provide that no reimbursement is required by this
act for a specified reason. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

   SECTION 1.    Section 261 of the   Penal
Code   is amended to read: 
   261.  (a) Rape is an act of  sexual intercourse 
 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,  accomplished with a person not the spouse of
the  perpetrator,   defendant,  under any
of the following circumstances:
   (1)  Where a person   If   the
victim  is incapable, because of a mental disorder or
developmental or physical disability, of giving legal consent, and
this is known or reasonably should be known to the person
committing the act.   defendant.  Notwithstanding
the existence of a conservatorship pursuant to  the
provisions of  the Lanterman-Petris-Short Act (Part 1
(commencing with Section 5000) of Division 5 of the Welfare and
Institutions Code), the prosecuting attorney shall prove, as an
element of the crime, that a mental disorder or developmental or
physical disability rendered the  alleged  victim
incapable of giving consent.
   (2)  Where it   If the act  is
accomplished against  a person's   the victim's
 will by means of force, violence, duress, menace, or fear of
immediate and unlawful bodily injury on the  person 
 victim  or another.
   (3)  Where a person   If   the
victim  is prevented from resisting by any intoxicating or
anesthetic substance, or any controlled substance, and this condition
was known, or reasonably should have been known by the 
accused.   defendant. 
   (4)  Where a person   If the victim  is
at the time unconscious of the nature of the act, and this is known
to the  accused.   defendant.  As used in
this paragraph, "unconscious of the nature of the act" means
incapable of resisting because the victim meets any one of the
following conditions:
   (A) Was unconscious or asleep.
   (B) Was not aware, knowing, perceiving, or cognizant that the act
occurred.
   (C) Was not aware, knowing, perceiving, or cognizant of the
essential characteristics of the act due to the  perpetrator'
s   defendant's  fraud in fact.
   (D) Was not aware, knowing, perceiving, or cognizant of the
essential characteristics of the act due to the  perpetrator'
s   defendant's  fraudulent representation that the
sexual penetration served a professional purpose when it served no
professional purpose.
   (5)  Where a person   If a victim 
submits under the belief that the person committing the act is
someone known to the victim other than the  accused,
  defendant,  and this belief is induced by any
artifice, pretense, or concealment practiced by the  accused,
  defendant,  with intent to induce the belief.
   (6)  Where   If  the act is accomplished
against the victim's will by threatening to retaliate in the future
against the victim or any other person, and there is a reasonable
possibility that the  perpetrator   defendant
 will execute the threat. As used in this paragraph,
"threatening to retaliate" means a threat to kidnap or falsely
imprison, or to inflict extreme pain, serious bodily injury, or
death.
   (7)  Where   If    the act is
accomplished against the victim's will by threatening to use the
authority of a public official to incarcerate, arrest, or deport the
victim or another, and the victim has a reasonable belief that the
 perpetrator   defendant  is a public
official. As used in this paragraph, "public official" means a person
employed by a governmental agency who has the authority, as part of
that position, to incarcerate, arrest, or deport another. The
 perpetrator   defendant  does not actually
have to be a public official.
   (b) As used in this section, "duress" means a direct or implied
threat of force, violence, danger, or retribution sufficient to
coerce a reasonable person of ordinary susceptibilities to perform an
act which otherwise would not have been performed, or acquiesce in
an act to which one otherwise would not have submitted. The total
circumstances, including the age of the victim, and his or her
relationship to the defendant, are factors to consider in appraising
the existence of duress.
   (c) As used in this section, "menace" means any threat,
declaration, or act which shows an intention to inflict an injury
upon another.
   SEC. 2.    Section 261.5 of the   Penal Code
  is amended to read: 
   261.5.  (a) Unlawful sexual intercourse is an act of 
sexual intercourse   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,  accomplished with
a person who is not the spouse of the  perpetrator,
  defendant,  if the person is a minor. For the
purposes of this section, a "minor" is a person under  the
age of  18 years  of age  and an "adult" is a
person who is at least 18 years of age.
   (b)  Any person   A defendant  who
engages in an act of unlawful sexual intercourse with a minor who is
not more than three years older or three years younger than the
 perpetrator,   defendant,  is guilty of a
misdemeanor.
   (c)  Any   A    person who
engages in an act of unlawful sexual intercourse with a minor who is
more than three years younger than the  perpetrator 
 defendant  is guilty of either a misdemeanor or a felony,
and shall be punished by imprisonment in a county jail not exceeding
one year, or by imprisonment pursuant to subdivision (h) of Section
1170.
   (d)  Any   A  person 21 years of age or
older who engages in an act of unlawful sexual intercourse with a
minor who is under 16 years of age is guilty of either a misdemeanor
or a felony, and shall be punished by imprisonment in a county jail
not exceeding one year, or by imprisonment pursuant to subdivision
(h) of Section 1170 for two, three, or four years.
   (e) (1) Notwithstanding any other provision of this section, an
adult who engages in an act of  unlawful sexual intercourse
with a minor in violation of this section may be liable for civil
penalties in the following amounts:
   (A) An adult who engages in an act of unlawful sexual intercourse
with a minor less than two years younger than the adult is liable for
a civil penalty not to exceed two thousand dollars ($2,000).
   (B) An adult who engages in an act of unlawful sexual intercourse
with a minor at least two years younger than the adult is liable for
a civil penalty not to exceed five thousand dollars ($5,000).
   (C) An adult who engages in an act of unlawful sexual intercourse
with a minor at least three years younger than the adult is liable
for a civil penalty not to exceed ten thousand dollars ($10,000).
   (D) An adult over the age of 21 years who engages in an act of
unlawful sexual intercourse with a minor under 16 years of age is
liable for a civil penalty not to exceed twenty-five thousand dollars
($25,000).
   (2) The district attorney may bring actions to recover civil
penalties pursuant to this subdivision. From the amounts collected
for each case, an amount equal to the costs of pursuing the action
shall be deposited with the treasurer of the county in which the
judgment was entered, and the remainder shall be deposited in the
Underage Pregnancy Prevention Fund, which is hereby created in the
State Treasury. Amounts deposited in the Underage Pregnancy
Prevention Fund may be used only for the purpose of preventing
underage pregnancy upon appropriation by the Legislature.
   (3) In addition to any punishment imposed under this section, the
judge may assess a fine not to exceed seventy dollars ($70) against
 any   a  person who violates this section
with the proceeds of this fine to be used in accordance with Section
1463.23. The court  shall, however,   shall
 take into consideration the defendant's ability to pay, and
 no   a  defendant shall  not  be
denied probation because of his or her inability to pay the fine
permitted under this subdivision.
   SEC. 3.    Section 262 of the   Penal Code
  is amended to read: 
   262.  (a) Rape of a person who is the spouse of the 
perpetrator   defendant  is an act of 
sexual intercourse   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,  accomplished
under any of the following circumstances:
   (1)  Where it   If   the ac 
 t  is accomplished against a  person's 
 victim's  will by means of force, violence, duress, menace,
or fear of immediate and unlawful bodily injury on the 
person   victim  or another.
   (2)  Where   If  a  person
  victim  is prevented from resisting by any
intoxicating or anesthetic substance, or any controlled substance,
and this condition was known, or reasonably should have been known,
by the  accused.   defendant. 
   (3)  Where   If  a  person is
  victim is,  at the  time  
time,  unconscious of the nature of the act, and this is known
to the  accused.   defendant.  As used in
this paragraph, "unconscious of the nature of the act" means
incapable of resisting because the victim meets one of the following
conditions:
   (A) Was unconscious or asleep.
   (B) Was not aware, knowing, perceiving, or cognizant that the act
occurred.
   (C) Was not aware, knowing, perceiving, or cognizant of the
essential characteristics of the act due to the  perpetrator'
s   defendant's  fraud in fact.
   (4)  Where   If    the act is
accomplished against the victim's will by threatening to retaliate in
the future against the victim or any other person, and there is a
reasonable possibility that the  perpetrator  
defe   ndant  will execute the threat. As used in this
paragraph, "threatening to retaliate" means a threat to kidnap or
falsely imprison, or to inflict extreme pain, serious bodily injury,
or death.
   (5)  Where   If  the act is accomplished
against the victim's will by threatening to use the authority of a
public official to incarcerate, arrest, or deport the victim or
another, and the victim has a reasonable belief that the 
perpetrator   defendant  is a public official. As
used in this paragraph, "public official" means a person employed by
a governmental agency who has the authority, as part of that
position, to incarcerate, arrest, or deport another. The 
perpetrator   defendant  does not actually have to
be a public official.
   (b) As used in this section, "duress" means a direct or implied
threat of force, violence, danger, or retribution sufficient to
coerce a reasonable person of ordinary susceptibilities to perform an
act which otherwise would not have been performed, or acquiesce in
an act to which one otherwise would not have submitted. The total
circumstances, including the age of the  victim, 
 victim  and his or her relationship to the defendant, are
factors to consider in apprising the existence of duress.
   (c) As used in this section, "menace" means any threat,
declaration, or act that shows an intention to inflict an injury upon
another.
   (d) If probation is granted upon conviction of a violation of this
section, the conditions of probation may include, in lieu of a fine,
one or both of the following requirements:
   (1) That the defendant make payments to a battered women's
shelter, up to a maximum of one thousand dollars ($1,000).
   (2) That the defendant reimburse the victim for reasonable costs
of counseling and other reasonable expenses that the court finds are
the direct result of the defendant's offense.
   For any order to pay a fine, make payments to a battered women's
shelter, or pay restitution as a condition of probation under this
subdivision, the court shall make a determination of the defendant's
ability to pay. In no event shall any order to make payments to a
battered women's shelter be made if it would impair the ability of
the defendant to pay direct restitution to the victim or
court-ordered child support.  Where   If 
the injury to a married person is caused in whole or in part by the
criminal acts of his or her spouse in violation of this section, the
community property may not be used to discharge the liability of the
offending spouse for restitution to the injured spouse, required by
Section 1203.04, as operative on or before August 2, 1995, or Section
1202.4, or to a shelter for costs with regard to the injured spouse
and dependents, required by this section, until all separate property
of the offending spouse is exhausted.
   SEC. 4.    Section 266c of the   Penal Code
  is amended to read: 
   266c.   (a)    Every person who induces any
other person to engage in  sexual intercourse, sexual
penetration, oral copulation, or sodomy   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   the victim's  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, is punishable by imprisonment in a county jail for not more than
one year or in the state prison for two, three, or four years.

    As 
    (b)    As  used in this section, "fear"
means the fear of physical injury or death to the  person
  victim  or to any relative of the  person
  victim  or member of the  person's
  victim's  family.
   SEC. 5.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 19817 of the Business and
Professions Code is amended to read:
   19817.  The commission shall establish and appoint a Gaming Policy
Advisory Committee of 12 members. The committee shall be composed of
five representatives of controlled gambling licensees, five members
of the general public, and two members from the department. The
executive director shall, from time to time, convene the committee
for the purpose of discussing matters of controlled gambling
regulatory policy and any other relevant gambling-related issue. The
recommendations concerning gambling policy made by the committee
shall be presented to the commission, but shall be deemed advisory
and not binding on the commission in the performance of its duties or
functions. The committee may not advise the commission on Indian
gaming.  
  SEC. 2.    Section 19858 of the Business and
Professions Code is amended to read:
   19858.  (a) Except as provided in subdivisions (b), (c), and (g),
a person shall be deemed to be unsuitable to hold a state gambling
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
any form of gambling prohibited by Section 330 of the Penal Code,
whether within or without this state.
   (b) Subdivision (a) does not apply to a publicly traded racing
association, a qualified racing association, or any person who is
licensed pursuant to subdivision (b) or (c) of Section 19852.
   (c) Subdivision (a) does not apply to a person or entity that
meets all of the following criteria:
   (1) Holds a license in good standing as an owner of a gambling
establishment pursuant to this chapter for at least five years as of
January 1, 2015. For purposes of this subdivision, "good standing"
means that the owner's state gambling license is not the subject of
outstanding allegations by the department for any violation of the
Gambling Control Act.
   (2) Has notified the commission and the department and received
commission approval, after completion of a background check conducted
by the department, to obtain a financial interest in another
business or organization within the United States that conducts
lawful gambling outside of California that, if conducted within
California, would be unlawful. A licensee shall provide the
department with any information pertaining to the licensee's proposed
participation in that business or organization as the department may
request. The commission shall not grant a temporary approval under
this section.
   (3) Has paid the commission and the department for the reasonable
costs incurred by the commission and the department for the
investigation and approval to obtain the financial interest described
in paragraph (2).
   (d) It is unlawful for any cross-promotion or marketing to occur
between the business or organization described in paragraph (2) of
subdivision (c) and the gambling establishment described in paragraph
(1) of subdivision (c). For purposes of this subdivision,
"cross-promotion or marketing" means the offering to any customers of
the gambling establishment anything of value related to visiting or
gambling at the business or organization described in paragraph (2)
of subdivision (c).
   (e) A licensee shall not, in connection with a business or
organization described in paragraph (2) of subdivision (c), knowingly
do any of the following:
   (1) Violate a foreign, federal, tribal, state, county, city, or
township law, regulation, ordinance, or rule, or any equivalent
thereof, concerning the conduct of gambling.
   (2) Fail to conduct the operation in accordance with the standards
of honesty and integrity required for gambling in this state.
   (3) Engage in an activity or enter into an association that is
unsuitable for a licensee because that activity or association does
any of the following:
   (A) Poses an unreasonable threat to the control of gambling in
this state.
   (B) Reflects or tends to reflect discredit or disrepute upon this
state or gaming in this state.
   (C) Is contrary to the public policy of this state concerning
gaming.
   (4) Engage in an activity or enter into an association that
interferes with the ability of this state to collect all license fees
imposed by this chapter.
   (5) Employ, contract with, or associate with, a person whom the
commission has found guilty of cheating or to whom the commission has
denied a gambling license, or finding of suitability, on the ground
of unsuitability.
   (f) The commission shall 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 described in paragraph (2) of subdivision (c).
   (g) Subdivision (a) does not apply to a person who meets all of
the following criteria:
   (1) The person is licensed or had an application to be licensed on
file with the commission on or before February 1, 2013.
   (2) The person has a financial interest in a business or
organization engaged in gambling prohibited by Section 330 of the
Penal Code that was closed and was not engaged in prohibited gambling
at the time the person was either licensed or had filed an
application to be licensed with the commission.
   (3) The person has a financial interest in a gambling
establishment that is located on any portion of, or contiguous to,
the grounds on which a racetrack is or had been previously located
and horserace meetings were authorized to be conducted by the
California Horse Racing Board on or before January 1, 2012.
   (4) The grounds upon which the gambling establishment described in
paragraph (3) is located are directly or indirectly owned by a
racetrack limited partnership owner. For purposes of this paragraph,
a "racetrack limited partnership owner" is defined as a limited
partnership, or a number of related limited partnerships, that is or
are at least 80 percent capitalized by limited partners that are an
"institutional investor" as defined in subdivision (w) of Section
19805, an "employee benefit plan" as defined in Section 1002(3) of
Title 29 of the United States Code, or an investment company that
manages a state university endowment.
   (h) Within three years of the date the closed business or
organization reopens or becomes engaged in any form of gambling
prohibited by Section 330 of the Penal Code, a person described in
subdivision (g) shall either divest that person's interest in the
business or organization, or divest that person's interest in the
gambling enterprise or gambling establishment for which the person is
licensed or has applied to be licensed by the commission.
   (i) A person described in subdivision (g) shall inform the
commission within 30 days of the date on which a business or
organization in which the person has a financial interest begins to
engage in any form of gambling prohibited by Section 330 of the Penal
Code.
   (j) During the three-year divestment period described in
subdivision (h), it is unlawful for any cross-promotion or marketing
to occur between the business or organization that is engaged in any
form of gambling prohibited by Section 330 of the Penal Code and the
gambling enterprise or gambling establishment described in paragraph
(3) of subdivision (g). For purposes of this subdivision,
"cross-promotion or marketing" means the offering to any customers of
the gambling enterprise or gambling establishment anything of value
related to visiting or gambling at the business or organization
engaged in any form of gambling prohibited by Section 330 of the
Penal Code.
   (k) During the three-year divestment period described in
subdivision (h), any funds used in connection with the capital
improvement of the gambling enterprise or gambling establishment
described in paragraph (3) of subdivision (g) shall not be provided
from the gaming revenues of either the business or organization
engaged in gaming prohibited under Section 330 of the Penal Code.
   (l) If, at the end of the three-year divestment period described
in subdivision (h), any person described in subdivision (g) has not
divested his or her interest in either the gambling enterprise or
gambling establishment or the business or organization engaged in any
form of gaming prohibited under Section 330 of the Penal Code, the
prohibitions of Section 19858 as it read on January 1, 2013, apply.
 
  SEC. 3.    No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.