BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 163|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 163
Author: Mendoza (D)
Amended: 4/2/08 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 10-0, 04/22/08
AYES: Florez, Battin, Denham, Maldonado, Negrete McLeod,
Padilla, Vincent, Wiggins, Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : Not relevant
SUBJECT : Gambling: local ordinances
SOURCE : Capital Casino
Commerce Club
Hollywood Park Casino
Lucky Derby
Lucky Lady
Phoenix Card Club
DIGEST : This bill 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 card clubs.
Senate Floor Amendments of 4/2/08 replace the contents of
this bill, relating to the Chiropractic Initiative Act,
with language relating to local government gambling
ordinances, and change the author from Eng to Mendoza.
CONTINUED
AB 163
Page
2
ANALYSIS : Existing law provides for the licensure and
regulation of various legalized gambling activities and
establishments by the California Gambling Control
Commission and the enforcement of those activities by the
Department of Justice (DOJ).
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.
Existing law provides that an amendment of an ordinance
permitting an increase of gambling of less than 25 percent
when compared to that authorized on January 1, 1996 may
occur without voter approval.
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 DOJ for
review and comment before the ordinance is adopted by the
city or county.
Existing law places a moratorium on the authorization of
legal gaming by a local governing body or local electors
and an expansion of gambling, as defined, until January 1,
2015.
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.
Background
Existing law prohibits an "expansion of gambling" in card
clubs until January 1, 2015. An "expansion of gambling" is
AB 163
Page
3
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 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.
Prior/Related Legislation
SB 152 (Florez), 2007-08 session, passed the Senate Floor
(24-0) on 9/5/07, but was vetoed. 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 percent. 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/19/08)
AB 163
Page
4
Capital Casino (co-source)
Commerce Club (co-source)
Hollywood Park Casino (co-source)
Lucky Derby (co-source)
Lucky Lady (co-source)
Phoenix Card Club (co-source)
ARGUMENTS IN SUPPORT : According to the author's office,
this bill 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 bill 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.
TSM:nl 6/19/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****