BILL ANALYSIS
Bill No: AB
163
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 163 Author: Mendoza
As Amended: April 2, 2008
Hearing Date: April 22, 2008
Consultant: Chris Lindstrom
SUBJECT
Gambling: local ordinances.
DESCRIPTION
AB 163 adds a new section to the Gambling Control Act to
authorize a local government to amend its gambling
ordinance to increase the number of tables that may be
operated by small or medium-sized card clubs.
Specifically, this bill authorizes a local government that
has a gambling ordinance in effect on July 1, 2007, to
increase the number of tables that a card club may operate
as follows:
1)If the ordinance in effect on July 1, 2007 provided for
five to eight tables, inclusive, the amended ordinance
may allow an increase of three tables.
2)If the ordinance in effect on July 1, 2007 provided for
nine to 12 tables, inclusive, the amended ordinance may
allow an increase of four tables.
EXISTING LAW
Existing law provides for the licensure and regulation of
various legalized gambling activities and establishments by
the California Gambling Control Commission (Commission) and
the enforcement of those activities by the Division.
(Gambling Control Act, Business and Professions Code 19801,
et seq.)
AB 163 (Mendoza) continued
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Existing law authorizes a city, county, or city and county
to permit controlled gambling, consistent with state law,
if it has a local gambling ordinance in effect as
specified. (Business and Professions Code 19960)
Existing law provides that an amendment of an ordinance
permitting an expansion of gambling, as defined, may occur
without voter approval. (Business and Professions Code
19961)
Existing law requires that any amendment to a city or
county ordinance relating to gambling establishments or the
Gambling Control Act is required to be submitted to the
Division for review and comment before the ordinance is
adopted by the city or county. (Business and Professions
Code 19961.1)
Existing law places a moratorium on the authorization of
legal gaming by a local governing body or local electors
and an expansion of gambling until January 1, 2015.
(Business and Professions Code 19962)
BACKGROUND
Purpose of the bill. According to the author's office,
this measure is intended to allow cities and counties that
have medium-sized card clubs to amend their local
ordinances to allow for these clubs to add three or four
more additional tables. Currently many medium-sized card
clubs find that they have insufficient space to accommodate
their business on weekends. This measure will allow a city
or county to amend the ordinance to increase the number of
card tables in order to accommodate those who wish to play
in the card clubs.
Background. Existing law prohibits an "expansion of
gambling" in card clubs until January 1, 2015. An
"expansion of gambling" is defined as an increase of 25
percent or more, when compared to that authorized on
January 1, 1996, in: (1) the number of gambling tables in
the city, county, or city and county; (2) the number of
licensed cardrooms in the city, county, or city and county;
(3) the number of gambling tables that may be operated in a
gambling establishment in the city, county, or city and
county; (4) the hours of operation of a gambling
AB 163 (Mendoza) continued
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establishment in the city, county, or city and county; and
(5) the maximum amount permitted to be wagered in a game.
The increases in the number of tables proposed by this bill
would constitute an "expansion of gambling" and, therefore,
requires legislative authorization for the increases to
occur.
SB 152 (Florez). Last year, a similar measure was vetoed
by the Governor. SB 152 would have allowed a city, county,
or city and county, without permission of the voters, and
pursuant to a gambling ordinance in effect on January 1,
2007, prohibiting more than 12 tables, to increase the
number of gambling tables by an amount not to exceed 45%.
In his veto message, the Governor wrote:
"I am returning Senate Bill 152 without my signature.
"This measure would allow a forty-five percent increase
in the number of gaming tables that certain card rooms
may operate. As such, this bill creates a significant
exemption to the current moratorium on expanding local
gaming establishments. As a similar exemption was
approved just two years ago, I do not believe it is
appropriate to make another exemption at this time.
"For this reason, I am returning this bill without my
signature."
Arguments in support: The Commerce Club, Hollywood Park
Casino, the Lucky Lady, the Lucky Derby, Phoenix Casino,
and Capitol Casino argue that SB 163 will allow
medium-sized card clubs a moderate increase in the number
of tables, provided that the city or county in which they
are located amends their ordinance. Thus, this measure
empowers local government, if they so choose, to allow the
card clubs in their jurisdiction to add three or four
tables to these clubs.
Last year, Senator Florez authored SB 152, which sought to
allow the small and medium-sized card clubs to increase the
number of tables by up to 45%. Unfortunately, that measure
was vetoed by the Governor. This measure, which is more
modest, seeks to allow only a three or four table increase
to the medium-sized clubs.
AB 163 (Mendoza) continued
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Many of the medium-sized card clubs are unable to
accommodate players who wish to play in their clubs on
Friday and Saturday nights. Individuals often come to a
card club on Friday or Saturday, and wait an hour or more
for an opportunity to sit down and play. Many of these
people become discouraged and leave. This measure would
allow these clubs to expand the number of tables to
accommodate the business which they already have, but which
they are unable to serve.
RELATED LEGISLATION
SB 152 (Florez), 2007-2008 Legislative Session . Would have
allowed a city, county, or city and county, without
permission of the voters, and pursuant to a gambling
ordinance in effect on January 1, 2007, prohibiting more
than 12 tables, to increase the number of gambling tables
by an amount not to exceed 45%, as described. (Vetoed by
the Governor)
AB 1973 (Bermudez) Chapter 854, Statutes of 2006. The bill
made a number of changes in the Gambling Control Act
relating to new table fees for problem gambling, hours and
operation, moratorium on the expansion of gambling,
(extended from January 1, 2010 to January 1, 2015) and
eligibility requirements of two members of the Gambling
Control Commission.
AB 635 (Bermudez) Chapter 694, Statutes of 2005. Permitted
local governments to revise their ordinances without
approval of voters, and increase the number of gambling
tables by up to 24.99% as specified.
AB 864 (Firebaugh) Chapter 872, Statutes of 2004. Provided
that an amendment to a local ordinance permitting an
expansion of gambling as specified, may occur without voter
approval as described.
SB 814 (Vincent) Chapter 799, Statutes of 2003. Among its
provisions, the bill extended the moratorium on a city or
county authorizing new local gambling establishments from
January 1, 2007, to January 1, 2010.
AB 2431 (Wesson) Chapter 738, Statutes of 2002. Increased
the current moratorium on new local gambling establishments
from January 1, 2001, to January 1, 2007 as specified.
AB 163 (Mendoza) continued
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SB 952 (Senate Committee on Governmental Organization)
Chapter 945, Statutes of 2001. The bill made specified
changes relative to the duties and responsibilities of the
California Gambling Control Commission and the Division of
Gambling Control.
SB 100 (Maddy) Chapter 387, Statutes of 1995. Established
the original moratorium on local card room expansion,
prohibiting the creation of any new card rooms until
January 1, 2001.
SUPPORT: As of April 18, 2008:
Capital Casino
Commerce Club
Hollywood Park Casino
Lucky Derby
Lucky Lady
Phoenix Card Club
OPPOSE: None on file as of April 18, 2008.
FISCAL COMMITTEE: Senate Appropriations Committee