as amended, Lara.
begin deleteGambling Control Act: corporations. end 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. Existing law requires a corporation to comply with specified requirements in order to obtain a gambling license, including a requirement that the corporation register as a corporation with the department and supply specified supplemental information to the department with the application and upon request of the department, such as remuneration as compensation for services to specified individuals and the amount of remuneration to persons other than directors and officers in excess of $100,000. Existing law also requires that information to include a copy of the corporation’s annual federal income tax return, within 30 calendar days after that return is filed with the Internal Revenue Service.end delete
This bill would specify that information on the extent of the remuneration as compensation for services of specified individuals includes bonuses. The bill would require supplying information on the amount of remuneration to persons other than directors and officers in excess of $95,000. The bill would also require the corporation to supply in its information a copy of its annual federal income tax return within 30 business days after that return is filed.end delete
begin deleteno end delete.
State-mandated local program: no.
The people of the State of California do enact as follows:
(a) This division does not apply to any person doing
4business under any law of any state or of the United States relating
5to banks, trust companies, savings and loan associations, insurance
6premium finance agencies, credit unions, small business investment
7companies, community advantage lenders, California business and
8industrial development corporations when acting under federal
9law or other state authority, or licensed pawnbrokers when acting
10under the authority of that license.
11“Community advantage lender” means an entity authorized by
12the United States Small Business Administration to deliver
13community advantage loans.
14(b) This division does not apply to a check casher who holds a
15valid permit issued pursuant to Section 1789.37 of the Civil Code
16when acting under the authority of that permit, and shall not apply
17to a person holding a valid license issued pursuant to Section 23005
18of the Financial Code when acting under the authority of that
20(c) This division does not apply to a college or university making
21a loan for the purpose of permitting a person to pursue a program
22or course of study leading to a degree or certificate.
P3 1(d) This division does not apply to a broker-dealer acting
2pursuant to a certificate then in effect and issued pursuant to
3Section 25211 of the Corporations Code.
4(e) This division does not apply to any person who makes five
5or fewer loans in a 12-month period, these loans are commercial
6loans as defined in Section 22502, and the loans are incidental to
7the business of the person relying upon the exemption.
12 This division does not apply to any public corporation as
13defined in Section 67510 of the Government Code, any public
14entity other than the state as defined in Section 811.2 of the
15Government Code, or any agency of any one or more of the
16foregoing, when making any loan so long as the public corporation,
17public entity, or agency of any one or more of the foregoing
18complies with all applicable federal and state laws and regulations.
Section 19880 of the Business and Professions
20Code is amended to read:
In addition to the requirements of Section 19852, in
22order to be eligible to receive a gambling license as the owner of
23a gambling enterprise, a corporation shall comply with all of the
25(a) Maintain an office of the corporation in the gambling
27(b) Comply with all of the requirements of the laws of this state
28pertaining to corporations.
29(c) Maintain, in the corporation’s principal office in California
30or in the gambling establishment, a ledger that meets both of the
32(1) At all times reflects the ownership of record of every class
33of security issued by the corporation.
34(2) Is available for inspection by the department at all reasonable
35times without notice.
36(d) Supply supplemental forms and information, in accordance
37with Section 19865, with the initial license application, and
38thereafter only on request, to the department, which shall include,
39but not be limited to, all of the following:
P4 1(1) The organization, financial structure, and nature of the
2business to be operated, including the names, personal and criminal
3history, and fingerprints of all officers and directors, and the names,
4addresses, and number of shares held by all stockholders of record.
5(2) The rights and privileges acquired by the holders of different
6classes of authorized securities, including debentures.
7(3) The terms and conditions on which securities are to be
9(4) The terms and conditions on all outstanding loans,
10mortgages, trust deeds, pledges, or any other indebtedness or
12(5) The extent of the equity security holdings in the corporation
13of all officers, directors, and underwriters, and their remuneration
14as compensation for services, in the form of salary, wages, fees,
15 bonuses, or otherwise.
16(6) The amount of remuneration to persons other than directors
17and officers in excess of ninety-five thousand dollars ($95,000)
19(7) Bonus and profit-sharing arrangements.
20(8) Management, consultant, and service contracts related to
21the operation of controlled gaming.
22(9) Options existing, or to be created, in respect of their
23securities or other interests.
24(10) Financial statements for at least three fiscal years preceding
25the year of registration, or, if the corporation has not been in
26existence for a period of three years, financial statements from the
27date of its formation. All financial statements shall be prepared in
28accordance with generally accepted accounting principles and
29audited by a licensee of the California Board of Accountancy.
30(11) Any further financial data that the department, with the
31approval of the commission, may deem necessary or appropriate
32for the protection of the state.
33(12) An annual profit-and-loss statement, an annual balance
34sheet, and a copy of its annual federal income tax return, within
3530 business days after that return is filed with the Internal Revenue