BILL ANALYSIS
AB 1924
Page 1
ASSEMBLY THIRD READING
AB 1924 (Jeffries)
As Introduced February 12, 2008
Majority vote
GOVERNMENTAL ORGANIZATION 13-0
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|Ayes:|Torrico, Plescia, Charles | | |
| |Calderon, Davis, De | | |
| |Leon, Evans, Garcia, | | |
| |Jeffries, Levine, | | |
| |Portantino, Price, Silva, | | |
| |Tran | | |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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.
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 and the enforcement of those
activities by the Bureau of Gambling Control.
4)Excludes from the definition of controlled games the game of
AB 1924
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bingo, horse racing, the Lottery, and games played with cards
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 : 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.
AB 1216 (Harvey), Chapter 394, Statutes of 1993, raised the
portion of proceeds from bingo games to be used for the monthly
rental of property and specified overhead costs, from 20% or
$1,000 whichever is less, to 20% 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
organizations to conduct described fundraisers using controlled
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games (i.e., poker nights).
SB 639 (McPherson), Chapter 778, Statutes of 2000, was enabling
legislation to implement SCA 4 (McPherson), Resolution Chapter
123, Statutes of 1999, permitting the legalization and
regulation of charitable raffles as described in California.
SCA 4 became Proposition 17 of 2000, which 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% or $1,000 whichever is less, to 20% or $2,000
whichever is less. This amount is taken before the deduction of
prizes.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0004160