BILL ANALYSIS                                                                                                                                                                                                    



                                                                AB 163
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        CONCURRENCE IN SENATE AMENDMENTS
        AB 163 (Mendoza)
        As Amended April 2, 2008
        Majority vote
         
         
         ---------------------------------------------------------------------- 
        |ASSEMBLY: |     |(June 5, 2008)  |SENATE: |33-5 |(July 2, 2008)       |
         ---------------------------------------------------------------------- 
                  (vote not relevant)


         ------------------------------------------------------------------------ 
        |COMMITTEE VOTE:  |11-0 |(August 20, 2008)   |RECOMMENDATION: | concur   |
        |                 |     |                    |                |          |
         ------------------------------------------------------------------------ 

        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:

           a)   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; or,

           b)   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,  








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        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 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.

         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% 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  








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             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.  AB 163, 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  
        bill 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, makes 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, permits local  
        governments to revise their ordinances without approval of voters,  
        and increase the number of gambling tables by up to 24.99% as  
        specified.









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        AB 864 (Firebaugh) Chapter 872, Statutes of 2004, provides 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, extends 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, increases the  
        current moratorium on new local gambling establishments from  
        January 1, 2001, to January 1, 2007 as specified.

        SB 952 (Committee on Governmental Organization) Chapter 945,  
        Statutes of 2001, makes 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, establishes 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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