BILL ANALYSIS
AB 1924
Page 1
Date of Hearing: April 9, 2008
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Alberto Torrico, Chairman
AB 1924 (Jeffries) - As Introduced: February 13, 2008
SUBJECT : Charitable bingo: overhead.
SUMMARY : Raises the limit on the portion of proceeds from
charitable bingo that may be used for the rental of property and
for overhead, including the purchase of bingo equipment,
administrative expenses, security equipment, and security
personnel from $2,000 per month to $3,000 per month. Current
law is 20% of the proceeds before the deduction for prizes, or
$2,000 per month, whichever is less. Specifically, this bill :
1)Provides the amount of bingo proceeds that may be used for
rental and overhead, as described, to 20% of the proceeds
before the deduction for prizes, or $3,000 per month,
whichever is less, may be used for the rental of property and
for overhead, including the purchase of bingo equipment,
administrative expenses, security equipment, and security
personnel.
EXISTING LAW :
1)The California Constitution allows the Legislature, by
statute, to authorize cities and counties to provide for bingo
games for charitable purposes.
2)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.
3)Provides for the licensure and regulation of various legalized
gambling activities, establishments, and businesses by the
California Gambling Commission (Commission) and the
enforcement of those activities by the Bureau of Gambling
Control (Bureau).
4)Excludes from the definition of controlled games the game of
bingo, horse racing, the Lottery, and games played with cards
AB 1924
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in private homes or residences in which no person makes money
for operating the game, except as a player. (Penal Code
Section 337j(e))
FISCAL EFFECT : Unknown.
COMMENTS :
Background . Currently, non-profit organizations in California
may host bingo games and raffles. Charities must register with
the Attorney General's Registry of Charitable Trusts prior to
conducting a raffle, and report afterwards. Charities operating
bingo games must comply with local ordinances regulating days,
locations, and hours of operation. Local governments may charge
a licensing fee for bingo games.
In 1993, AB 1216 (Harvey) was chaptered. The bill raised the
portion of proceeds from bingo games to be used for the monthly
rental of property and specified overhead costs, from 20 percent
or $1,000 whichever is less, to 20 percent or $2,000 whichever
is less. Supporters stated the $1,000 limit on administrative
expenses, which was last raised in 1981, was no longer
sufficient to cover bingo-operating costs. Charities stated an
increase was needed because it has become necessary for
nonprofits to hire security due to the increase in armed
robberies at bingo games.
Due to fewer dollars available to charitable organizations from
the state, the trend has been toward larger games conducted in
bingo parlors. These games are commercialized, and held usually
in custom designed facilities on a seven-day a week basis,
raising and handling large sums of money.
Purpose of the bill . According to the author, this bill is
needed to make up for increased operational costs related to
inflation and increased property rental costs to conduct
charitable bingo. No increase has occurred since 1993 for
administrative expenses that are borne by charities. In
essence, the $2,000 monthly limit on the portion of charitable
bingo proceeds that may be used for property rental and overhead
expenses reflects 1993 economics. A $3,000 monthly limit
reflects 2008 economics.
Prior legislation . AB 839 (Torrico), Chapter 707, Statutes of
2006. Provides statutory authority for specified nonprofit
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organizations to conduct described fundraisers using controlled
games (i.e., poker nights).
SB 639 (McPherson) Chapter 778, Statutes of 2000. Enabling
legislation to implement SCA 4, permitting the legalization and
regulation of charitable raffles as described in California.
SCA 4 (McPherson) Chapter 123, Statutes of 1999. Became
Proposition 17 of 2000, was enacted by the electorate, and
amended the State Constitution to permit the Legislature to
authorize private, nonprofit, eligible organizations to
conduct raffles as funding mechanisms to support their own or
other private, nonprofit beneficial and charitable works.
SB 1810 (Davis) Chapter 445, Statutes of 1998. Required all
individuals involved in charitable fundraising, to register with
the Attorney General to provide sufficient information to
identify and contact any entity engaged in possible illicit
activity as specified.
SB 8 (Lockyer) Chapter 867, Statutes of 1997. Repealed and
re-enacted The Gambling Control Act providing for the regulation
of non-Indian gambling in California.
AB 1216 (Harvey), Chapter 394, Statutes of 1993. Raised the
portion of proceeds from bingo games presently allowed to be
used for the monthly rental of property and specified overhead
costs, from 20 percent or $1,000 whichever is less, to 20
percent or $2,000 whichever is less. This amount is taken
before the deduction of prizes.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531