BILL ANALYSIS
AB 334
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 334 (Levine)
As Amended August 27, 2008
Majority vote
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|ASSEMBLY: | |(May 29, 2008) |SENATE: |26-10|(August 30, |
| | | | | |2008) |
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(vote not relevant)
Original Committee Reference: PUB. S.
SUMMARY : Appropriate $500,000 from the California Bingo Fund
(Bingo Fund), established by SB 1369 (Cedillo) of 2008, to the
California Gambling Control Commission (CGCC) to fund operating,
personnel, and other startup costs incurred by it relating to
the establishment of remote caller bingo.
The Senate amendments :
1)Appropriate up to $500,000, as determined by order of the
Director of the Department of Finance, to the CGCC for use in
fiscal year 2008-09 for purposes relating to the regulation of
remote caller bingo, as specified.
2)Provide this bill shall become operative only if SB 1369 of
the 2007-08 Regular Session is enacted and becomes operative.
EXISTING LAW :
1)Provides, under Article IV, Section 19(c) of the Constitution
of the State of California, that the Legislature by statute
may authorize cities and counties to provide for bingo games,
but only for charitable purposes.
2)Permits bingo games to be conducted "by organizations exempted
from the payment of the bank and corporation tax by Revenue
and Taxation Code Sections 23701a, 23701b, 23701d, 23701e,
23701f, 23701g, and 23701l, and by mobilehome park
associations and senior citizens organizations," if the
proceeds are used only for charitable purposes and the games
are conducted in a city, county, or city and county pursuant
to an ordinance enacted under the constitutional provision.
[Penal Code Section 326.5 (a)]
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3)Permits cities and counties to allow bingo games to be
conducted by nonprofit organizations for charitable purposes
in accordance with certain conditions. Provides that a
violation of these provisions is a misdemeanor, as specified.
4)Requires that the proceeds of bingo games be used only for
charitable purposes, with certain exceptions, including an
exception providing that no more than 20% of the proceeds
before the deduction for prizes, or $2,000 per month,
whichever is less, may be used for the rental of property and
for overhead, and a prize cap of $250 per game.
5)Defines "bingo" as a game of chance in which prizes are
awarded on the basis of designated numbers or symbols on a
card that conform to numbers or symbols that are selected at
random.
AS PASSED BY THE ASSEMBLY , this bill created an infraction for
any person who acquires or re-acquires ownership of a handgun or
who reports his/her ownership of a handgun to the Department of
Justice (DOJ) on or after July 1, 2008, to fail to notify local
law enforcement if the handgun is lost or stolen, as specified.
FISCAL EFFECT : The CGCC has estimated that it will cost
approximately $500,000 to implement the regulations as required
SB 1369.
COMMENTS : This bill was substantially amended in the Senate and
the Assembly-approved provisions of this bill were deleted.
Purpose of the bill: SB 1369, to which enactment of this bill
is contingent, establishes the Bingo Fund and would authorize a
loan from the Gambling Control Fund to the Bingo Fund, on or
after January 1, 2009, in an amount of up to $500,000 to fund
operating, personnel, and other startup costs incurred by the
CGCC. SB 1369 authorizes nonprofit organizations, mobile-home
park associations, senior citizens organizations, and
organizations affiliated with school districts that have been
incorporated or in existence for three years or more to conduct
remote caller bingo.
According to the author, this bill provides the appropriation
necessary to pay for regulation of remote caller bingo. This
bill simply appropriates the money in the Bingo Fund to the CGCC
AB 334
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to cover its operating, personnel, and other startup costs. SB
1369 provides that such funds shall be available to the CGCC
upon appropriation by the Legislature.
SB 1369 provides for a loan from the Gambling Control Fund to
the Bingo Fund because, as a newly established fund, it contains
no money. The loan "primes" the fund. SB 1369 provides that
the loan shall be repaid to the Gambling Control Fund as soon as
there is sufficient money in the Bingo Fund to repay the amount
loaned.
Related legislation: SB 1369, authorizes remote caller bingo as
a game in which specific tax-exempt organizations, as defined,
may use audio or video technology to link designated in-state
facilities for playing bingo pursuant to a local ordinance and
state regulation and oversight. In addition, defines "bingo" as
a game of chance in which prizes are awarded on the basis of
designated numbers or symbols that are marked or covered by the
player on a tangible card in the player's possession and that
conform to numbers or symbols, selected at random and announced
by a live caller, as specified.
SB 864 (Battin) of the 2007-08 Legislative Session defines
"bingo" to permit games in which players use paper bingo cards
that can combine the use of an electronic aid that notifies the
player of a winning card; and, prohibits the use of electronic
systems that store bingo cards on computers in lieu of paper
cards. (Assembly G.O. Committee - Failed passage in committee)
SB 1626 (Steinberg) of the 2007-08 Legislative Session would
allow bingo to be played on an electronic replica of a bingo
card, so long as it is not a slot machine (Senate G.O.
Committee).
SB 1328 (Cedillo) of the 2007-2008 Legislative Session would add
a new section to the Penal Code to authorize the play of "remote
caller" bingo games in California (Senate G.O. Committee).
AB 1924 (Jeffries), Chapter 216, Statutes of 2008, provides,
with respect to bingo games conducted by the Lake Elsinore Elks
Lodge only, an increase for proceeds that may be used for rental
and overhead, to 20% of the proceeds before the deduction for
prizes, or $3,000 per month, whichever is less, as specified.
The language for AB 1924 has been incorporated into SB 1369.
AB 334
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Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0007710