BILL ANALYSIS
AB 293
Page 1
ASSEMBLY THIRD READING
AB 293 (Mendoza)
As Amended April 13, 2009
Majority vote
GOVERNMENTAL ORGANIZATION 17-1APPROPRIATIONS 11-2
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|Ayes:|Price, Chesbro, Cook, |Ayes:|De Leon, Ammiano, Charles |
| |Coto, De Leon, Evans, | |Calderon, Davis, Fuentes, |
| |Galgiani, Hall, Hill, | |Hall, John A. Perez, |
| |Jeffries, Lieu, Mendoza, | |Price, Skinner, Solorio, |
| |Portantino, Silva, | |Torlakson |
| |Torres, Torrico, Tran | | |
| | | | |
|-----+--------------------------+-----+---------------------------|
|Nays:|Anderson |Nays:|Nielsen, Audra Strickland |
| | | | |
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SUMMARY : Makes numerous technical and substantive changes to
the Gambling Control Act (Act) (Chapter 5 of Division 8 of the
Business and Professions Code commencing with Section 19800) as
it relates to cardrooms and restructures the licensing
requirements for partnerships and other entities. Allows
limited liability companies (LLCs) to secure gambling licenses
subject to specified requirements. Specifically, this bill :
1)Includes within the Act's license eligibility provisions a
requirement that if the gambling establishment owner is a LLC,
then every officer, manager, member, or owner must
individually apply for and obtain a gambling license.
2)Requires the Act's current ownership license eligibility
provisions governing general or limited partnerships to also
apply to LLCs. These requirements include maintaining an
office in the gambling establishment and a ledger in an office
of the LLC that reflects the ownership of all interests and is
available for inspection by the Bureau of Gambling Control
(Bureau) at all reasonable times without notice. These
licensees must also register with the Bureau and supply
specified personal and financial information regarding the
organization, including financial profit and loss statements,
bonus and profit-sharing arrangements, and management and
service contracts.
AB 293
Page 2
3)Makes other technical and conforming changes to the Act.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, costs for the California Gambling Control Commission
(Commission) associated with this legislation would be less than
$20,000 per year and should be absorbable within existing
resources.
COMMENTS : The Act, enacted in 1997, is the law governing
licensed card clubs and has not undergone any comprehensive
updates since then. This bill makes a number of procedural
changes relating to licenses and licenses where shortcomings in
the law have become evident during the intervening years.
According to the materials provided by the author's office, this
bill streamlines the procedures of the Commission and the Bureau
of Gambling Control (GCB) within the Department of Justice.
This bill officially recognizes LLCs by explicitly including the
licensing category in the Act. The Act already requires various
types of owners (natural persons, corporations, publicly traded
racing associations, qualified racing associations,
partnerships, and trusts) to apply for a license to operate a
gambling enterprise.
Other key provisions of the bill:
1)Require the Commission to develop licensing regulations to
allow continuous operation of a cardroom in cases including,
but not limited to, the death, insolvency, foreclosure,
receivership, or incapacity of a licensee; and,
2)Clarify that the Commission can take disciplinary action
against an individual owner without affecting the licenses of
other endorsed owners.
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531
FN: 0000416