BILL ANALYSIS Ó AB 701 Page 1 Date of Hearing: April 8, 2015 ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION Adam Gray, Chair AB 701 (Cristina Garcia) - As Introduced February 25, 2015 SUBJECT: Gaming: Gaming Policy Advisory Committee SUMMARY: Makes modifications to an existing provision of the Gambling Control Act (Act) pertaining to the Gaming Policy Advisory Committee (GPAC). Specifically, this bill: 1) Increase the membership of GPAC from 10 to 12 members. 2) Requires GPAC to be composed of 5 representatives of controlled gambling licensees, 5 members of the general public, and 2 representatives from the California Department of Justice's Bureau of Gambling Control (DOJ). AB 701 Page 2 EXISTING LAW: 1) Establishes within the Act a regulatory framework for gaming in California, creating the California Gambling Control Commission (CGCC) with the authority to approve, deny, revoke, or suspend gambling licenses and permits for reasonable cause. 2) Establishes a 10-member GPAC, composed of representatives of controlled gambling licensees and members of the general public in equal numbers. 3) Requires the executive director of the CGCC to convene the GPAC, from time to time, for the purpose of discussing matters of controlled gambling regulatory policy and any other relevant gambling-related issue. 4) Provides that the GPAC may not advise the CGCC on Indian gaming. FISCAL EFFECT: Unknown COMMENTS: AB 701 Page 3 Purpose of the bill : According to the author's office, this measure is intended to take important steps to encourage state policies, laws and regulations concerning card clubs that will support job creation and increase economic activity. In addition, this bill will reiterate in statute the path of communication for card club operators and regulators to discuss pertinent issues. The bill is intended to make the GPAC more relevant to the CGCC, gaming industry, and the public at large. According to the author, this bill will codify the involvement of the DOJ on GPAC. The input of both DOJ and CGCC has proven to be very beneficial in determining the scope and authority of GPAC and in advising on upcoming issues to be considered by the committee. In addition, by expanding the membership to include two additional seats, this bill will also allow for greater representation from the public and law enforcement representatives. GPAC Mission Statement : The stated mission statement for GPAC is to provide advisory recommendations to the CGCC concerning matters of controlled gaming regulatory policy and other relevant gambling related issues, with special attention to guaranteeing the integrity of gambling operations and to deal effectively with problem gambling. Current make-up of GPAC : One member is a representative of DOJ, one member is a representative of the problem gambling field, one member is a representative of a licensed or registered Third Party Provider of Proposition Player Services, two members are a AB 701 Page 4 representative of larger (25 tables or more) licensed gambling establishments, two members are a representative of small (less than 25 tables) licensed gambling establishments, one member is a law enforcement officer/investigator from local government where an approved ordinance allows controlled gaming, one member is a professional with an accounting background and one member is a member of the general public at large. It should be noted, that the CGCC is responsible for appointing and constituting GPAC yet, under current law, there is no requirement that GPAC meet. Prior Legislation : AB 654 (Hall), 2013-2014 Legislative Session. Would have required GPAC to meet at least twice a year and would require the CGCC to consult with the GPAC on recommended proposed regulations, as specified. The bill was gutted and amended in the Senate Governmental Organization Committee. AB 1290 (Lara), 2011-2012 Legislative Session. Would have required the GPAC to meet twice a year. The bill was gutted an amended on the Senate floor. SB 8 (Lockyer), Chapter 867, Statutes of 1997. Repealed the AB 701 Page 5 Gaming Regulation Act and enacted the Gambling Control Act of 1997. Established CGCC and charged it with, among other things, the authority to issue, deny, revoke, suspend, or impose conditions, restrictions, or limitations on licenses, permits, or approvals to ensure that unsuitable or unqualified persons are not involved in the operation of gambling. Furthermore, established the Bureau of Gambling Control (formerly known as the Division of Gambling Control) within the DOJ and charged it with specified investigative and enforcement duties. REGISTERED SUPPORT / OPPOSITION: Support None on file Opposition None on file Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531 AB 701 Page 6