BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1753
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          ASSEMBLY THIRD READING
          AB 1753 (Hall)
          As Amended  April 14, 2010
          Majority vote 

           GOVERNMENTAL ORGANIZATION 21-0  APPROPRIATIONS      15-0        
           
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          |Ayes:|Coto, Anderson,           |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Blakeslee, Chesbro, Cook, |     |Bradford, Coto, Davis,    |
          |     |Bradford, Evans,          |     |Hill, Hall, Harkey,       |
          |     |Galgiani, Hall,           |     |Miller Nielsen, Skinner,  |
          |     |Hernandez, Hill,          |     |Solorio, Torlakson,       |
          |     |Charles Calderon, Ma,     |     |Torrico                   |
          |     |Mendoza, Nestande, V.     |     |                          |
          |     |Manuel Perez, Portantino, |     |                          |
          |     |Silva, Torres, Torrico,   |     |                          |
          |     |Tran                      |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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  








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            location.

          5)Makes relating technical changes.  

           EXISTING FEDERAL LAW  defines a "gambling machine" (15 U.S.C.  
          Sec. 1171 (a) (1)) as:

          1)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 which when operated may deliver, as  
            the result of the application of an element of chance, any  
            money or property; or, 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. 

          2)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 which when operated may deliver, as the result of the  
            application of an element of chance, any money or property;  
            or, 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. 

          3)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. 

           EXISTING STATE LAW  : 

          1)Prohibits the possession and use of a "slot machine or device"  
            as defined under California Penal Code Sections 330a, 330b,  
            and 330.1.

          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  
            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.).









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          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.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, costs to local governments are considered negligible  
          and non-reimbursable with an offset to some extent by additional  
          fine revenues.

           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."  

          The sponsor for this bill, the Los Angeles County Sheriff's  
          Department hopes that increasing the fines will deter the  
          proliferation of illegal slot machines.


           Analysis Prepared by  :    Rod Brewer / G. O. / (916) 319-2531 


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