BILL ANALYSIS
Bill No: AB
441
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 441 Author: Hall
As Amended: March 4, 2010
Hearing Date: June 22, 2010
Consultant: Art Terzakis
SUBJECT
Local Gaming
DESCRIPTION
AB 441 makes the following modification to the Gambling
Control Act as it relates to the limit on increases in the
number of gambling tables that a local jurisdiction may
authorize without voter approval:
1. Deletes an existing provision of the Act that allows a
local jurisdiction to increase the number of gambling
tables by two, regardless of whether that increase would
equal or exceed 25% of the number of tables authorized on
January 1, 1996 and instead, authorizes a local
jurisdiction to amend its local gaming ordinance, without
voter approval, to permit an increase by two gaming
tables that may be operated in a gambling establishment
compared to the number authorized on January 1, 2010.
2. Makes it explicit that a local jurisdiction may
exercise the authority provided by this section only one
time, but this authority shall be in addition to any
authorization under any other law for a local
jurisdiction to increase the number of gambling tables
that may be operated.
EXISTING LAW
Existing law provides for the licensure and regulation of
various legalized gambling activities and establishments by
the California Gambling Control Commission (CGCC) and the
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enforcement of those activities by the Department of
Justice (DOJ). [Gambling Control Act, Section 19801, et
seq. of the Business and Professions Code]
Existing law authorizes a local jurisdiction to permit
controlled gambling, consistent with state law, if it has a
local gambling ordinance in effect, as specified.
[Business and Professions Code 19960]
Existing law provides that an amendment of an ordinance
permitting an increase of gambling of less than 25 percent
when compared to that authorized on January 1, 1996 may
occur without voter approval. [Business and Professions
Code 19961]
Existing law authorizes a local jurisdiction to increase
that number referenced in Business and Professions Code
19961 by two tables, regardless of whether that increase
would equal or exceed 25% of the number of tables
authorized on January 1, 1996. [Business and Professions
Code 19961.05]
Existing law requires that any amendment to a local
jurisdiction ordinance relating to gambling establishments
or the Gambling Control Act is required to be submitted to
DOJ for review and comment before the ordinance is adopted
by the local jurisdiction. [Business and Professions Code
19961.1]
Existing law places a moratorium on the authorization of
legal gaming by a local governing body or local electors
and an expansion of gambling, as defined, until January 1,
2015. [Business and Professions Code 19962]
BACKGROUND
Purpose of AB 441: According to the author's office, this
measure is necessary to clarify some confusion in the
provisions of current law that allow for adding gaming
tables at card clubs. The existing moratorium prohibits
local jurisdictions from amending ordinances to authorize
additional gaming without voter approval. However, there
are exceptions. Currently, local jurisdictions may allow
card clubs to increase the number of tables in their
establishments by 24.99 percent. If they have 12 or fewer
tables, they can authorize an increase of up to four
AB 441 (Hall) continued
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tables. These are two separate sections and some have
argued that a local jurisdiction is not restricted from
invoking both in order to allow for such expansion without
voter approval.
AB 441 is intended to clarify that local jurisdictions can
amend the provisions of their ordinances to allow for such
expansion only once. As currently drafted, AB 441 would
provide that any such expansion is based on the number of
tables authorized as of January 1, 2010, so as to allow the
two-table expansion on top of any expansion that has been
authorized already.
Arguments in Support: Proponents argue that this measure
is necessary to correct a problem created by ambiguous and
poorly drafted law. Two separate sections of law provide
for a modest expansion in the number of tables an existing
card club may put into service and two conflicting legal
opinions on the implementation of those two sections have
left card clubs and local jurisdictions unsure of what they
can and cannot do. Proponents claim that this measure is
designed to bring clarity to the provisions authorizing
local jurisdictions to amend their ordinances for a modest
expansion of existing card clubs. Proponents contend that
this measure will prevent some card clubs from being
considered in violation of current law even though current
law is confusing and conflicting.
Arguments in Opposition: Writing in opposition, the
California Coalition Against Gambling Expansion (CCAGE),
emphasizes that, "AB 441 allows for an increase in the
number of allowed tables in cardrooms/clubs without the
voters' consent, as required under current law."
PRIOR/RELATED LEGISLATION
SB 213 (Florez) 2009-10 Session. Among other things, would
have extended the moratorium on the issuance of new
gambling establishments from January 1, 2015 to January 1,
2020. (Vetoed - Governor's message stated, "There is no
compelling rationale for extending the gambling moratorium
at this time, as a similar extension was approved just
three years ago.")
AB 2193 (Hall) 2009-10 Session. Extends the moratorium on
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the issuance of new gambling establishments from January 1,
2015 to January 1, 2020. (Pending in this Committee)
AB 293 (Mendoza) Chapter 233, Statutes of 2009. Made
numerous changes to the Gambling Control Act, including
replacing references to "gambling establishments" with
"gambling enterprises" in specific sections of the Act.
SB 1697 (Florez) 2007-2008 Session . Among other things,
would have allowed CGCC to consider applications to
activate expired gambling licenses. (Died in Assembly G.O.
Committee)
AB 560 (Richardson) 2007-2008 Session . Among other things,
would have allowed CGCC to consider applications to
activate expired gambling licenses provided that the card
club remains in the same city, county, or city and county
in which it was located. (Died in Assembly G.O. Committee)
AB 163 (Mendoza) Chapter 647, Statutes of 2008. Authorized
a city or county, without voter approval, to amend an
ordinance to increase the number of gambling tables that
may be operated in a gambling establishment by 3 tables if
the ordinance in effect on July 1, 2007, provided for 5 to
8 tables, and by 4 tables if the ordinance in effect on
July 1, 2007, provided for 9 to 12 tables.
SB 730 (Florez) Chapter 438, Statutes of 2007 . Among other
things, authorized CGCC to issue licenses for a two-year
period and required CGCC to establish a portable key
employee license program.
AB 1973 (Bermudez) Chapter 854, Statutes of 2006 . Among
other things, extended the moratorium on the expansion of
gambling from January 1, 2010, to January 1, 2015.
SB 1198 (Florez) Chapter 181, Statutes of 2006 . Deleted
"wagering limits" from the list of items that are
considered expansion of gambling pursuant to the moratorium
on the expansion of existing gaming in a locality.
AB 635 (Bermudez) Chapter 694, Statutes of 2005 . Permitted
local governments to revise their ordinances limiting the
number of tables in card rooms by 24.99 percent or two
tables, whichever is greater, as compared with the level or
number operated or authorized on January 1, 1996, without
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voter approval.
AB 864 (Firebaugh) Chapter 872, Statutes of 2004 .
Permitted cities and counties to adopt ordinances
permitting the expansion of gambling that result in less
than a 25 percent increase, without voter approval.
SB 814 (Vincent) Chapter 799, Statutes of 2003 . Authorized
CGCC to renew gambling licenses for a period of up to 2
years. Specified that for any license issued for more than
one year the licensee shall continue to pay the annual
gambling license fee. Also, extended the moratorium on the
expansion of gambling from January 1, 2007 to January 1,
2010.
AB 2431 (Governmental Organization Committee) Chapter 738,
Statutes of 2002 . Made numerous clarifying, technical and
code maintenance changes within the Gambling Control Act.
SB 952 (Governmental Organization Committee) Chapter 945,
Statutes of 2001. Made numerous changes pertaining to the
CGCC and the duties of the Division of Gambling Control.
SB 8 (Lockyer) Chapter 867, Statutes of 1997 . Repealed the
Gaming Regulation Act, and instead enacted the Gambling
Control Act, which provided for DOJ to investigate and
enforce controlled gambling in the state. It also
established CGCC to regulate gambling in this state to
issue, suspend, or revoke gambling licenses.
SB 100 (Maddy) Chapter 387, Statutes of 1995. Established
the original moratorium on card room expansion, prohibiting
the creation of new card rooms until January 1, 2001.
SUPPORT: As of June 18, 2010:
California Gaming Association
Capital Casino Card Club
Lucky Derby Card Club
Lucky Lady Card Club
Village Club
OPPOSE: As of June 18, 2010:
California Coalition Against Gambling Expansion
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FISCAL COMMITTEE: Senate Appropriations Committee
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