BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 1924|
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THIRD READING
Bill No: AB 1924
Author: Jeffries (R)
Amended: 6/30/08 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 6-2, 6/24/08
AYES: Battin, Denham, Harman, Negrete McLeod, Vincent,
Wiggins
NOES: Florez, Yee
NO VOTE RECORDED: Padilla, Wyland
ASSEMBLY FLOOR : 78-0, 4/21/08 - See last page for vote
(May not be relevant)
SUBJECT : Charitable bingo: overhead: Lake Elsinore
Elks Lodge
SOURCE : Author
DIGEST : This bill, with respect to bingo games conducted
by the Lake Elsinore Elks Lodge only, increases the amount
of bingo proceeds that may be used for rental and overhead,
to 20 percent of the proceeds before the deduction for
prizes, or $3,000 per month, whichever is less, as
specified. This bill requires that the amount of proceeds
otherwise permitted under current law be used only for the
purpose of financing the rebuilding of the facility and
replacing equipment that was destroyed by fire in 2007.
This bill provides that these provisions shall remain in
effect only until the cost of rebuilding the facility is
CONTINUED
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repaid, or January 1, 2019, whichever occurs first.
ANALYSIS : Article IV, Section 19(c) of the California
Constitution, states that "the Legislature by statute may
authorize cities and counties to provide for bingo games,
but only for charitable purposes." Current statute limits
the operation of bingo games in California to nonprofit
organizations and certain other entities and requires that
profits from charity bingo be used for charitable purposes
only.
Existing law permits cities, counties, and cities and
counties to allow bingo games to be conducted by specified
organizations for charitable purposes, subject to
provisions of law which, if violated, constitute a crime.
Existing law requires that the proceeds of bingo games
shall be used only for charitable purposes, with certain
exceptions, including an exception providing that no more
than 20 percent 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, including the
purchase of bingo equipment, administrative expenses,
security equipment, and security personnel.
This bill:
1. Provides that for the purposes of bingo games conducted
by the Lake Elsinore Elks Lodge, a portion of the
proceeds, not to exceed 20 percent 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.
2. Provides that any amount of the proceeds that is in
addition to that currently allowed, up to $1,000, shall
be used for the purpose of financing the rebuilding of
the facility and the replacement of equipment which was
destroyed by fire in 2007.
3. Provides that these provisions are to remain in effect
only until the cost of rebuilding the facility is
AB 1924
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repaid, or January 1, 2019, whichever occurs first.
Comments
According to the author's office, this bill is a district
bill intended to help the Lake Elsinore Elks Lodge to
rebuild its facility that recently burned down in a fire.
According to a representative from the Elks, the
reconstruction will cost $1.4 million. The Elks insurance
policy covers $750,000 of the costs, and they have received
some donations and are applying for a $100,000 grant from
the county. Lake Elsinore Elks Lodge offers bingo one
night a week and would like to utilize a greater percentage
of its bingo proceeds (provided it is within the 20 percent
limitation) to help offset the reconstruction costs or help
pay off any loans. Depending upon how the bingo operation
is structured, the Elks Lodge may be able to benefit
directly from its own bingo operation and utilize a greater
percentage of its bingo proceeds to help pay for the
reconstruction or pay off any loans.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 6/26/08)
California Association of Nonprofits Policy Council
Lake Elsinore Elks Lodge
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Anderson, Arambula, Bass, Beall,
Benoit, Berg, Berryhill, Blakeslee, Brownley, Caballero,
Charles Calderon, Carter, Cook, Coto, Davis, De La Torre,
De Leon, DeSaulnier, DeVore, Duvall, Emmerson, Eng,
Evans, Feuer, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garcia, Garrick, Hancock, Hayashi, Hernandez,
Horton, Houston, Huff, Huffman, Jeffries, Jones,
Karnette, Keene, Krekorian, La Malfa, Laird, Leno,
Levine, Lieber, Lieu, Ma, Maze, Mendoza, Mullin,
Nakanishi, Nava, Niello, Parra, Plescia, Portantino,
Price, Sharon Runner, Ruskin, Salas, Saldana, Silva,
Smyth, Solorio, Spitzer, Strickland, Swanson, Torrico,
Tran, Villines, Walters, Wolk, Nunez
AB 1924
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NO VOTE RECORDED: Dymally, Soto
TSM:mw 7/1/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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