BILL ANALYSIS
AB 1753
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Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 1753 (Hall) - As Introduced: April 14, 2010
SUBJECT : Slot machines.
SUMMARY : Increases the misdemeanor penalties on non-casino
businesses who possess and uses a "slot machine or device," as
specified. Specifically, this bill :
1)Increases the misdemeanor penalties to provide that a first
offense would be punishable by a fine of not less than $500
nor more than $1,000, or by imprisonment in a county jail not
exceeding six months, or by both that fine and imprisonment.
2)Increases the misdemeanor penalties to provide that a second
offense would be punishable by a fine of not less than $1,000
nor more than $10,000, or by imprisonment in a county jail not
exceeding six months, or by both that fine and imprisonment.
3)Increases the misdemeanor penalties to provide that a third or
subsequent offense would be punishable by a fine of not less
than $10,000 nor more than $25,000, or by imprisonment in a
county jail not exceeding one year, or by both that fine and
imprisonment.
4)Provides if the offense involves more than one machine or more
than one location, an additional fine of not less than $1,000
nor more than $5,000 would be imposed per machine and per
location.
5)Makes relating technical changes.
EXISTING LAW :
1)Prohibits the possession and use of a "slot machine or device"
as defined under Sections 330a, 330b, and 330.1 of the
California Penal Code.
2)Prohibits certain activities and transactions pertaining to
"slot machines or devices" as long as they do not apply to a
manufacturer's business activities that are conducted in
accordance with the terms of a license issued by a tribal
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gaming agency pursuant to the tribal-state gaming compacts
entered into in accordance with the federal Indian Gaming
Regulatory Act (18 U.S.C. Sec. 1166 to 1168, inclusive, and 25
U.S.C. Sec. 2701 et seq.).
3)Provides varying definitions of "slot machine or device."
4)Stipulates that individuals who violate provisions of existing
state law is guilty of a misdemeanor and punishable by a fine
not less than $100 nor more than $1,000, or by imprisonment in
the county jail not exceeding six months, or by both such fine
and imprisonment.
5)Defines, under federal law, a "gambling machine" (15 U.S.C.
Sec. 1171 (a) (1)) as-
a) Any so-called "slot machine" or any other machine or
mechanical device an essential part of which is a drum or
reel with insignia thereon, and
i) which when operated may deliver, as the result of
the application of an element of chance, any money or
property, or
ii) by the operation of which a person may become
entitled to receive, as the result of the application of
an element of chance, any money or property; or
b) Any other machine or mechanical device (including, but
not limited to, roulette wheels and similar devices)
designed and manufactured primarily for use in connection
with gambling, and
i) which when operated may deliver, as the result of
the application of an element of chance, any money or
property, or
ii) by the operation of which a person may become
entitled to receive, as the result of the application of
an element of chance, any money or property; or
c) Any subassembly or essential part intended to be used in
connection with any such machine or mechanical device, but
which is not attached to any such machine or mechanical
device as a constituent part.
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FISCAL EFFECT : Unknown.
COMMENTS : This bill revises the fines for the possession of
unlicensed slot machines or similar devices. According to the
author, "The revision of these fines will deter the
proliferation of illegal slot machines at non-tribal gaming
facilities and provide law enforcement agencies with an
important tool to reaffirm the appropriate use and location of
slot machines in California."
Background . "Skill based" slot machines look and act nearly
identical to licensed slot machine devices found at tribal
gaming facilities. These mechanical devices are being placed in
bars, restaurants, liquor stores and tobacco shops in various
places throughout the state. These mechanical devices are
sometimes disguised as video arcade games, which, allows these
illegal machines to be placed in public view without being
easily detected. Business owners who operate these machines can
switch the machine from arcade game to video slot machine
through the use of a remote control.
Individuals who sell these mechanical devices, and business
owners who have these machines in their establishments, claim
that California's gaming laws do not apply to them because their
slots are games of "skill" and not games of "chance." As a
result, revenues received from these devices are unregulated and
go unreported and untaxed.
According to the Los Angeles Sheriff's Department, this bill's
sponsor, law enforcement has lacked the tools necessary to deter
and halt these illegal "skill based" slot devices from operation
at non-tribal gaming facilities by organized groups.
Author and sponsor assert that this bill's intent to increase
penalties and fines will better deter people from engaging in
this activity and help prevent the victimization of lower income
individuals.
REGISTERED SUPPORT / OPPOSITION :
Support
Los Angeles County Sheriff's Department
California State Sheriffs' Association
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Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531