BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1753|
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                                 THIRD READING


          Bill No:  AB 1753
          Author:   Hall (D)
          Amended:  4/14/10 in Assembly
          Vote:     21

           
           SENATE PUBLIC SAFETY COMMITTEE  :  7-0, 6/22/10
          AYES:  Leno, Cogdill, Cedillo, Hancock, Huff, Steinberg,  
            Wright
           
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
           
          ASSEMBLY FLOOR  :  71-0, 5/20/10 - See last page for vote


           SUBJECT  :    Slot machines

           SOURCE  :     Los Angeles County Sheriffs Department


           DIGEST  :    This bill increases the fines for repeat slot  
          machine-related offenses.

          ANALYSIS  :    Existing law provides that every person, who  
          has in his/her possession or under his/her control or who  
          permits to be placed, maintained or kept in any room,  
          space, inclosure or building owned, leased or occupied by  
          him/her, or under his management or control, any slot or  
          card machine, contrivance, appliance or mechanical device,  
          upon the result of action of which money or other valuable  
          thing is staked or hazarded, and which is operated or  
          played by placing or depositing therein coins, checks,  
          slugs, balls, or other articles or device, or in any other  
                                                           CONTINUED





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          manner or as a result of the operation of which any  
          merchandise, money, representative or article of value,  
          checks or tokens, redeemable in or exchangeable for money  
          or other thing of value, is won or lost, or taken from or  
          obtained from such machine, when the result of action or  
          operation of such machine, contrivance, etc., is dependent  
          upon hazard or chance, and every person who has in his/her  
          possession or under his/her control, either as owner,  
          lessee, agent, employee, mortgagee, or otherwise, or who  
          permits to be placed, maintained or kept, in any room,  
          space, inclosure or building, owned, leased or occupied by  
          him/her, or under his/her management or control, any card  
          dice, or any dice having more than six faces or bases each,  
          upon the result of action of which any money or other  
          valuable thing is staked or hazarded, or as a result of the  
          operation of which any merchandise, money, representative  
          or article of value, check or token, redeemable in or  
          exchangeable for money or any other thing of value is won  
          or lost or taken when the result of action or operation of  
          such dice is dependent upon hazard or chance is guilty of a  
          misdemeanor punishable by a fine between $100 and $1,000  
          and/or by imprisonment in the county jail not exceeding six  
          months.  (Section 33a of the Penal Code [PEN])

          This bill provides that the penalty for a second offense of  
          the above shall be a fine between $1,000 and $10,000 and/or  
          up to six months in the county jail.

          This bill provides that a third or subsequent offense of  
          the above shall be a fine between $10,000 and $25,000  
          and/or imprisonment in the county jail for up to one year. 

          This bill provides that if the above offense involved more  
          than one machine or more than one location, an additional  
          fine of $1,000 to $5,000 shall be imposed per machine per  
          location.

          Existing law provides that it is unlawful for any person to  
          manufacture, repair, own, store, possess, sell, rent,  
          lease, let on shares, lend or give away, transport, or  
          expose for sale or lease, or to offer to repair sell, rent,  
          lease, let on shares, lend or give away, or permit the  
          operation, placement, maintenance, or keeping of, in any  
          place, room, space, or building owned, leased, or occupied,  







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          managed, or controlled by that person, any slot machine or  
          device as defined.  It is unlawful for any person to make  
          or to permit the making of an agreement with another person  
          regarding any slot machine or device, by which the user of  
          the slot machine or device, as a result of the element of  
          hazard or chance or other unpredictable outcome, may become  
          entitled to receive money, credit, allowance, or other  
          thing of value or additional chance or right to use the  
          slot machine or device, or to receive any check, slug,  
          token, or memorandum entitling the holder to receive the  
          money, credit, allowance or other thing of value.  A  
          violation is a misdemeanor punishable by up to six months  
          in county jail and/or a fine not more than $1,000.  (PEN  
          Section 330b)

          This bill provides that a first violation of the above is  
          punishable by a fine between $500 and $1,000 and/or by  
          imprisonment in the county jail for up to six months.

          This bill provides that the penalty for a second offense of  
          the above shall be a fine between $1,000 and $10,000 and/or  
          up to six months in the county jail.

          This bill provides that a third or subsequent offense of  
          the above shall be a fine between $10,000 and $25,000  
          and/or imprisonment in the county jail for up to one year. 

          This bill provides that if the above offense involved more  
          than one machine or more than one location, an additional  
          fine of $1,000 to $5,000 shall be imposed per machine per  
          location.

          Existing law provides that every person who manufactures,  
          owns, stores, keeps, possesses, sells, rents, leases, lets  
          on shares, lend or gives away, transports, or exposes for  
          sale or lease, or offers to sell, rent, lease, lets on  
          shares, lend or give away or who permits the operation of  
          or permits to be placed, maintained, used or kept in any  
          room, space, or building owned, leased, or occupied by  
          him/her or under his/her management or control, any slot  
          machine or device as defined, and every person who makes or  
          permits to be made with any person any agreement with  
          reference to any slot machine or device as defined,  
          pursuant to which agreement with the user thereof, as a  







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          result of any element of hazard or chance, may become  
          entitled to receive anything of value or additional chance  
          or right to use that slot machine, or to receive any check,  
          slug, token, or memorandum, whether of value or otherwise,  
          entitling the holder to receive anything of value is a  
          misdemeanor punishable by a fine of not more than $1,000  
          and/or up to six months in jail. (PEN Section 330.1)

          This bill provides that the penalty for a second offense of  
          the above shall be a fine between $1,000 and $10,000 and/or  
          up to six months in the county jail.

          This bill provides that a third or subsequent offense of  
          the above shall be a fine between $10,000 and $25,000  
          and/or imprisonment in the county jail for up to one year. 

          This bill provides that if the above offense involved more  
          than one machine or more than one location, an additional  
          fine of $1,000 to $5,000 shall be imposed per machine per  
          location.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

           SUPPORT  :   (Verified  8/2/10)

          Los Angeles County Sheriff's Department (co-source)
          California State Sheriffs' Association
          Los Angeles County District Attorney's Office
          Morongo Band of Mission Indians, Tribal Council (if  
          amended)


           ARGUMENTS IN SUPPORT  :    According to the author:

            "Unlicensed slot machines, often disguised as video  
            arcade machines, are being placed in small businesses in  
            largely lower income neighborhoods.   These slot machines  
            look and act nearly identical to licensed slot machines  
            found at tribal gaming facilities yet are being placed in  
            bars, restaurants, liquor stores and tobacco shops.   
            Revenues from these machines are unregulated, unreported  
            and untaxed.








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            "The profits from these illegal slot machines make the  
            minor penalty for conviction merely a cost of doing  
            business for these offenders.  Therefore, law enforcement  
            has had few tools available to stop and deter these  
            machines from operating throughout California."


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Bass, Beall,  
            Bill Berryhill, Tom Berryhill, Blakeslee, Block,  
            Blumenfield, Bradford, Brownley, Buchanan, Caballero,  
            Charles Calderon, Carter, Chesbro, Conway, Cook, Coto,  
            Davis, De Leon, DeVore, Emmerson, Eng, Feuer, Fong,  
            Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,  
            Gilmore, Hagman, Hall, Hayashi, Hernandez, Hill, Huber,  
            Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie  
            Lowenthal, Ma, Mendoza, Miller, Monning, Nestande,  
            Niello, Nielsen, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Yamada
          NO VOTE RECORDED:  De La Torre, Evans, Fletcher, Harkey,  
            Nava, Norby, Villines, John A. Perez, Vacancy


          RJG:mw  8/2/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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