BILL ANALYSIS
AB 293
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Date of Hearing: April 22, 2008
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 293 (Mendoza) - As Amended: April 13, 2009
Policy Committee: Governmental
Organization Vote: 17 - 1
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill amends the Gambling Control Act to recognize limited
liability companies for licensing purposes, deletes the
requirement that a separate entrance be available for persons
under 21 years old who may require passage through the casino
and makes other substantive and technical, clarifying changes.
Specifically, this bill:
1) Authorizes the Gambling Control Commission (GCC) to
condition, restrict, discipline, or take action against the
license of an individual owner whether or not the commission
takes action against the license of the gambling enterprise.
2) Requires GCC to adopt regulations by December 31, 2011, to
provide procedures, criteria, and timelines for the
processing and approval of license applications so gambling
enterprises may operate continuously in cases including, but
not limited to, the death, insolvency, foreclosure,
receivership, or incapacity of a license.
3) Requires the chief of the Bureau of Gambling Control (BOGC)
within DOJ to file with GCC the rationale for recommended
approval of the license with restrictions or conditions.
Requires the chief, prior to filing his or her
recommendation, and not less than 10 business days prior to
GCC's meeting at which the application is to be considered,
to inform the applicant in writing of the basis for any
proposed recommendation.
4) Authorizes, if a gambling establishment is located in an
AB 293
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unincorporated area annexed by a city without a local
election other than the election to approve the annexation,
the city acquiring jurisdiction to adopt an ordinance
permitting and regulating controlled gaming in the existing
gambling establishment.
5) Requires that every officer, manager, member, and owner of a
limited liability company must individually apply for a
gambling license.
6) Applies the current licensing provisions used to govern
general or limited partnerships to limited liability
companies.
FISCAL EFFECT
Costs for the Gambling Control Commission (GCC) associated with
this legislation would be less than $20,000 per year and should
be absorbable within existing resources.
COMMENTS
1)Purpose . This legislation is primarily technical clean up of
the Gambling Control Act. The Gambling Control Act, the law
governing licensed card clubs, was enacted in 1997 and has not
undergone any comprehensive updates since then. This bill
makes a number of procedural changes relating to licenses and
licensees where shortcomings in the law have become evident
during the intervening years.
2)Related Legislation . This bill is substantially similar to AB
2627 (Mendoza) from 2008 that was vetoed due to the late
passage of the 2008-09 budget. In the message the governor
wrote, "I am only signing bills that are the highest priority
for California. This bill does not meet that standard and I
cannot sign it at this time."
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081