BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                    AB 58|
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                                 THIRD READING


          Bill No:  AB 58
          Author:   Jeffries (R)
          Amended:  As introduced
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 6/9/09
          AYES:  Leno, Benoit, Cedillo, Hancock, Huff, Steinberg,  
            Wright

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  71-1, 5/14/09 - See last page for vote


           SUBJECT  :    Non-commercial sports betting pools

           SOURCE  :     Author


           DIGEST  :    This bill provides that participation in a  
          non-commercial betting pool is an infraction, punishable by  
          a maximum fine of $250, plus penalty assessments.

           ANALYSIS  :    Existing law (Penal Code Section 337a) defines  
          the alternate felony-misdemeanor of bookmaking or pool  
          selling and applies that crime to the following  
          circumstances:

          1.Any person who engages in pool selling or bookmaking,  
            with or without writing, at any time or place.

          2.Any person who keeps or occupies any place with documents  
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            or paraphernalia for the purpose of recording any bet or  
            wager on any contest of skill, speed, et cetera of person  
            or animal or mechanical apparatus.

          3.Any person who receives, holds, or forwards any money,  
            consideration, or representation thereof, bet, pledge, et  
            cetera, upon the result of any trial, contest of skill,  
            speed or power of endurance of person or animal, or  
            between persons, or mechanical apparatus, or upon the  
            result of any chance or unknown or contingent event.

          4.Any person who, at any time or place, records, or  
            registers any bet or wager on the result of any contest  
            of skill, speed or power of endurance of person or animal  
            upon the result, or purported result, of any chance or  
            contingent event whatsoever.

          5.Any person who, being the owner, lessee or occupant of  
            any room, structure or vessel, as specified, permits the  
            same to be used or occupied for any purpose, or in any  
            manner prohibited by law.

          6.Any person who makes, offers or accepts any wager upon  
            the result, or purported result, of any trial or contest  
            of skill, speed, et cetera, is punishable by imprisonment  
            in a county jail for up to one year, a fine up to $5,000,  
            or both, or by imprisonment in the state prison for 16  
            months, two e years or three years.

          7.The crimes defined in Section 337a also apply t conduct  
            that purports to accomplish the noted acts.

          Existing law states that where a defendant is convicted of  
          bookmaking or pool selling for a second time, the defendant  
          shall, if not imprisoned in state prison, be imprisoned in  
          the county jail for a period of not more than one year; pay  
          a fine of not less than $1,000 nor more than $10,000; or be  
          punished by both such fine and imprisonment.  The court may  
          place the defendant on probation.  However, as a condition  
          of probation the defendant must pay a fine of between  
          $1,000 and $10,000, or be imprisoned in the county jail for  
          a period of not more than one year.  (Penal Code Section  
          337a, subd. (b).)








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          Existing law provides where the defendant has been  
          previously convicted two or more times of bookmaking or  
          pool selling, the defendant shall, if he or she is not  
          imprisoned in the state prison, be imprisoned in the county  
          jail for a period of not more than one year, pay a fine of  
          not less than $1,000 nor more than $15,000, or both.  The  
          court may place the defendant on probation provided,  
          however, that he or she must pay a fine of not less than  
          $1,000 nor more than $15,000 or to be imprisoned in the  
          county jail for a period of not more than one year as a  
          condition thereof.  (Penal Code Section 337a, subd. (c).)

          Existing law states that any person who bribes, or offers  
          to bribe, any person who is or will be umpiring, judging,  
          supervising, et cetera, any sporting event, contest, or  
          exhibition of any kind, with the intention or agreement  
          that such person shall corruptly umpire, judge, et cetera,  
          such event, contest, or exhibition is guilty of a felony  
          and shall be punished by imprisonment in the state prison  
          for 16 months, two years or three years, a fine not  
          exceeding $5,000, or both.  (Penal Code Section 337d).

          Existing law states that it is unlawful for any person, as  
          owner, lessee, or employee, whether for hire or not, either  
          solely or in conjunction with others, to do any of the  
          following without having first procured and thereafter  
          maintained in effect all federal, state, and local licenses  
          required by law:  to deal, operate, carry on, conduct,  
          maintain, or expose for play in California any controlled  
          game; to receive, directly or indirectly, any compensation  
          or reward or any percentage or share of the revenue, for  
          keeping, running, or carrying on any controlled game; or to  
          manufacture, distribute, or repair any gambling equipment  
          within the boundaries of this state, or to receive,  
          directly or indirectly, any compensation or reward for the  
          manufacture, distribution, or repair of any gambling  
          equipment within the boundaries of California.  (Penal Code  
          Section 337j, subd. (a).)

          Existing law provides that all persons and establishments  
          involved in the gambling operations must be licensed and  
          regulated by the Department of Justice, Division of  
          Gambling Control.  (Business and Professions Code Section  
          19802, subd. (h).)







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          This bill changes the penalty for participation in a  
          "sports betting pool," as specified, from a misdemeanor to  
          an infraction, punishable by a fine not to exceed $500.

          This bill provides that a sports betting pool is a betting  
          pool that is not operated for financial gain or hire, other  
          than the amount at stake under conditions available to  
          every participant in the pool as a result of any contest of  
          skill, speed, et cetera.

          This bill limits the size of a sports betting pool, as  
          defined by this bill, to a pool involving no more than  
          $2,500.

          This bill specifies that a sports betting pool cannot be  
          conducted on-line.

           Prior Legislation

          AB 1852 (Jeffries), 2007-08 Session  .  Passed the Senate on  
          7/7/08 with a 36-1 vote.  (NOES:  Wiggins)  The bill was  
          vetoed by the Governor based on budget-related  
          considerations unrelated to the policy issues raised by the  
          bill.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  6/19/09)

          California Public Defenders Association


           ARGUMENTS IN SUPPORT  :    

          According to the author's office:

            "About 18 months ago, in western Riverside County, a  
            73-year-old grandmother was charged with a crime for  
            operating a $50 football pool at the Wildomar Elks  
            Lodge.  Little did she know that existing law makes  
            participation in such pools a misdemeanor or a felony,  
            punishable by up to one year in imprisonment and/or a  







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            $5,000 fine, or by imprisonment in state prison.  This  
            means that vital law enforcement resources are expended  
            to investigate, charge and prosecute these two women  
            for participating in an activity that is as common as  
            speeding.  Statistics show:

             "1.   58 percent of the human resources professionals  
                said their company's employees have participated in  
                Super Bowl pools.

             "2.   55 percent have participated in regular-session  
                football pools.

             "3.   1 in 10 said employees participate in fantasy  
                football leagues at work.

             "4.   30% said employees at their operations bet in  
                office pools surrounding the college basketball  
                tournament.

             "5.   44 percent of U.S. workers have participated in  
                office betting pools.

            "Clearly the current punishment does not fit the crime.  
             AB 58 would remedy this by reducing participation in  
            such pools to an infraction, punishable by a fine not  
            to exceed five hundred dollars ($500).  Commercial  
            sports betting and operating betting pools for profit  
            would continue to be treated as they are today.   
            Speeding is against the law, but it isn't a  
            misdemeanor.  A friendly wager in the privacy of one's  
            home or office shouldn't be, either."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Arambula, Beall, Bill Berryhill, Tom  
            Berryhill, Blakeslee, Block, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore,  
            Duvall, Emmerson, Evans, Feuer, Fletcher, Fong, Fuller,  
            Furutani, Galgiani, Garrick, Gilmore, Hagman, Harkey,  
            Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,  
            Jones, Knight, Krekorian, Lieu, Logue, Bonnie Lowenthal,  
            Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello,  







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            Nielsen, John A. Perez, V. Manuel Perez, Portantino,  
            Price, Ruskin, Salas, Silva, Skinner, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada
          NOES:  Anderson
          NO VOTE RECORDED:  Ammiano, Eng, Fuentes, Gaines, Hall,  
            Saldana, Smyth, Bass


          RJG:cm  6/19/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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