BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 163
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 163 (Mendoza)
          As Amended April 2, 2008
          Majority vote
           
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          |ASSEMBLY:  |     |(June 5, 2007)  |SENATE: |33-5 |(July 2, 2008) |
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                            (vote not relevant)
           
           Original Committee Reference:    G.O.  

           SUMMARY  :  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.

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Authorize 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:

          2)Provide 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.

          3)Provide 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.

           AS PASSED BY THE ASSEMBLY  , this bill required the Department of  
          General Services (DGS) to adopt regulations for the construction  
          and renovation of state buildings that require the inclusion of  
          bicycle facilities, showers, and clothing lockers.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.

           COMMENTS  :  This bill was amended in the Senate and the  
          Assembly-approved provisions of this bill were deleted.  

           Purpose of the bill:   According to the author, this measure is  
          intended to allow cities and counties that have medium-sized  








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          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 card rooms 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.

           SB 152 (Florez)  :  Last year, the Governor vetoed a similar  
          measure.  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  








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          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.  

          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) of 2007 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 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.








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          SB 814 (Vincent) Chapter 799, Statutes of 2003, among its  
          provisions, 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.

          SB 952 (Senate Committee on Governmental Organization) Chapter  
          945, Statutes of 2001, 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.

          
          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531 


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