AB 2218, as amended, Burke. Gambling: licenses.
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 the act is a misdemeanor. Existing law requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified. Existing law also requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.
This bill would instead require the application described above to be filed within 60 calendar days after receipt of an order of the commission.
Existing law makes it a misdemeanor for a person who deals, plays, or carries on, opens, or causes to be opened, or who conducts, either as owner or employer, whether for hire or not, any of a list of specified gambling games, or any banking or percentage game played with cards, dice, or any device, for money, checks, credit, or any representative of value.
Existing law generally requires a person to be deemed unsuitable to hold a state gambling license under the California Gambling Control Act to own a gambling establishment if the person, or any partner, officer, director, or shareholder of that person, has any financial interest in any business or organization that is engaged in any form of gambling prohibited under the provision described above, whether within or without this state. Existing law exempts from these provisions a person who meets specified criteria, including a person who is licensed or had an application to be licensed on file with the commission on or before February 1, 2013. Existing law requires a person exempt under this provision, within 3 years of the date the closed business or organization reopens or becomes engaged in any form of gambling prohibited under the provision described above, to 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.
During this 3-year divestment period, existing law makes it unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization that is engaged in any form of gambling prohibited under the provision described above, and a gambling enterprise or gambling establishment.
This bill would instead require an exempt person, within 6 years of the date the closed business or organization reopens or becomes engaged in any form of gambling prohibited under the provision described above, to 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. The bill would also make conforming changes. By expanding the scope of an existing crime, the 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.
end deleteThis bill would provide that no reimbursement is required by this act for a specified reason.
end deleteThe bill would require the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees of the Legislature on the progress of the construction of the City of Champions Revitalization Project and its impact on the divestment requirement described above. By imposing a reporting requirement on the City of Inglewood, this bill would impose a state-mandated local program.
end insertbegin insertThis bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
end insertbegin insertThe 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 insertbegin insertThis bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.
end insertbegin insertWith regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
end insertVote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Section 19855 of the Business and Professions
2Code is amended to read:
Except as otherwise provided by statute or regulation,
4every person who, by statute or regulation, is required to hold a
5state license shall obtain the license prior to engaging in the activity
6or occupying the position with respect to which the license is
7required. Every person who, by order of the commission, is
8required to apply for a gambling license or a finding of suitability
9shall file the application within 60 calendar days after receipt of
10the order.
Section 19858 of the Business and Professions Code
12 is amended to read:
(a) Except as provided in subdivisions (b) and (c), a
14person shall be deemed to be unsuitable to hold a state gambling
15license to own a gambling establishment if the person, or any
16partner, officer, director, or shareholder of the person, has any
17financial interest in any business or organization that is engaged
P4 1in any form of gambling prohibited by Section 330 of the Penal
2Code, whether within or without this state.
3(b) Subdivision (a) shall not apply to a publicly traded racing
4association, a qualified racing association, or any person who is
5licensed pursuant to subdivision (b) or (c) of Section 19852.
6(c) Subdivision (a)
shall not apply to a person who meets all of
7the following criteria:
8(1) The person is licensed or had an application to be licensed
9on file with the commission on or before February 1, 2013.
10(2) The person has a financial interest in a business or
11organization engaged in gambling prohibited by Section 330 of
12the Penal Code that was closed and was not engaged in prohibited
13gambling at the time the person was either licensed or had filed
14an application to be licensed with the commission.
15(3) The person has a financial interest in a gambling
16establishment that is located on any portion of, or contiguous to,
17the grounds on which a racetrack is or had been previously located
18and horserace meetings were authorized to be
conducted by the
19California Horse Racing Board on or before January 1, 2012.
20(4) The grounds upon which the gambling establishment
21described in paragraph (3) is located are directly or indirectly
22owned by a racetrack limited partnership owner. For purposes of
23this paragraph, a “racetrack limited partnership owner” means a
24limited partnership, or a number of related limited partnerships,
25that is or are at least 80 percent capitalized by limited partners that
26are an “institutional investor” as defined in subdivision (w) of
27Section 19805, an “employee benefit plan” as defined in Section
281002(3) of Title 29 of the United States Code, or an investment
29company that manages a state university endowment.
30(d) Within six years of the date the closed business or
31organization reopens or
becomes engaged in any form of gambling
32prohibited by Section 330 of the Penal Code, a person described
33in subdivision (c) shall either divest that person’s interest in the
34business or organization, or divest that person’s interest in the
35gambling enterprise or gambling establishment for which the
36person is licensed or has applied to be licensed by the commission.
37(e) A person described in subdivision (c) shall inform the
38commission within 30 days of the date on which a business or
39organization in which the person has a financial interest begins to
P5 1engage in any form of gambling prohibited by Section 330 of the
2Penal Code.
3(f) During the six-year divestment period described in
4subdivision (d), it is unlawful for any cross-promotion or marketing
5to occur between the business or
organization that is engaged in
6any form of gambling prohibited by Section 330 of the Penal Code
7and the gambling enterprise or gambling establishment described
8in paragraph (3) of subdivision (c). For purposes of this
9subdivision, “cross-promotion or marketing” means the offering
10to any customers of the gambling enterprise or gambling
11establishment anything of value related to visiting or gambling at
12the business or organization engaged in any form of gambling
13prohibited by Section 330 of the Penal Code.
14(g) During the six-year divestment period described in
15subdivision (d), any funds used in connection with the capital
16improvement of the gambling enterprise or gambling establishment
17described in paragraph (3) of subdivision (c) shall not be provided
18from the gaming revenues of either the business or organization
19engaged in gaming
prohibited under Section 330 of the Penal Code.
20(h) If, at the end of the six-year divestment period described in
21subdivision (d), any person described in subdivision (c) has not
22divested his or her interest in either the gambling enterprise or
23gambling establishment or the business or organization engaged
24in any form of gaming prohibited under Section 330 of the Penal
25Code, the prohibitions of Section 19858 as it read on January 1,
262013, apply.
No reimbursement is required by this act pursuant to
28Section 6 of Article XIII B of the California Constitution because
29the only costs that may be incurred by a local agency or school
30district will be incurred because this act creates a new crime or
31infraction, eliminates a crime or infraction, or changes the penalty
32for a crime or infraction, within the meaning of Section 17556 of
33the Government Code, or changes the definition of a crime within
34the meaning of Section 6 of Article XIII B of the California
35Constitution.
begin insert(a)end insertbegin insert end insertbegin insertBy July 1, 2018, the City of Inglewood shall
37prepare and submit a report to the Legislature and appropriate
38policy committees of the Legislature on the progress of the
39construction of the City of Champions Revitalization Project and
40the project’s impact on the divestment requirement described in
P6 1subdivision (d) of Section 19858 of the Business and Professions
2Code.end insert
3
(b) (1) A report submitted
pursuant to subdivision (a) shall be
4submitted in compliance with Section 9795 of the Government
5Code.
6
(2) Pursuant to Section 10231.5 of the Government Code, this
7section is repealed on July 1, 2022.
The Legislature finds and declares that a special law
9is necessary and that a general law cannot be made applicable
10within the meaning of Section 16 of Article IV of the California
11Constitution because of the unique circumstances surrounding the
12City of Inglewood with respect to the construction of the City of
13Champions Revitalization Project and the project’s impact on the
14divestment requirement described in the Gambling Control Act,
15which governs the statewide regulation and enforcement of certain
16legalized gambling activities in the State.
No reimbursement is required by this act pursuant to
18Section 6 of Article XIII B of the California Constitution for certain
19costs that may be incurred by a local agency or school district
20because, in that regard, this act creates a new crime or infraction,
21eliminates a crime or infraction, or changes the penalty for a crime
22or infraction, within the meaning of Section 17556 of the
23Government Code, or changes the definition of a crime within the
24meaning of Section 6 of Article XIII B of the California
25Constitution.
26
However, if the Commission on State Mandates determines that
27this act contains other costs mandated by the state, reimbursement
28to local agencies and school districts for those costs shall be made
29pursuant to Part 7 (commencing with Section 17500) of Division
304 of Title 2 of the Government Code.
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