BILL ANALYSIS
AB 2193
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Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 2193 (Hall) - As Introduced: February 18, 2010
SUBJECT : Gambling: moratorium.
SUMMARY : Extends the moratorium on the issuance of a new
gambling license for card rooms from January 1, 2015 to January
1, 2020. Specifically, this bill :
1)Prohibits a governing body of electors representing a city,
county, or city and county from authorizing or expanding any
legal gaming beyond those licenses that were permitted on
January 1, 1996, and, extends the sunset date from January 1,
2015 to January 1, 2020.
2)Limits the California Gambling Control Commission (CGCC) from
issuing a gambling license for a card room that was not
licensed to operate on December 31, 1999, unless an
application to operate that establishment was on file with the
Department of Justice (DOJ) before September 1, 2000, and,
extends the sunset date from January 1, 2015 to January 1,
2020.
EXISTING LAW :
1)Establishes the Gambling Control Act (Act) and provides for
the licensure of certain individuals and establishments
involved in various gambling activities, and for the
regulation of those activities, by the California Gambling
Control Commission.
2)Provides for the enforcement of those activities by the
California Department Of Justice.
3)Provides that any violation of the Act for which a penalty is
not provided is punishable as a misdemeanor.
4)Prohibits, until January 1, 2015 the governing body and the
electors of a county, city, or city and county from
authorizing or expanding any legal gaming beyond that
permitted on January 1, 1996.
AB 2193
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5)Prohibits the California Gambling Control Commission, until
January 1, 2015, from issuing a gambling establishment that
was not licensed to operate on December 31, 1999, except as
specified.
FISCAL EFFECT : Unknown.
COMMENTS :
Background . The Gambling Control Act of 1998 (Act) was
established to provide a comprehensive scheme for statewide
regulation of legal gambling. Among several things, the Act
provided that no new gambling establishment may be opened in a
city, county, or city and county, in which a gambling
establishment was not operating on and before January 1, 1984,
except upon the affirmative vote of the electors of that local
jurisdiction. Local jurisdictions may adopt a gambling
ordinance governing items such as the hours of operation of
gambling at those premises, patron security, location of
premises, wagering limits and the number of tables permitted in
those premises and in the jurisdiction as a whole.
There are currently two statutory moratoriums that restrict the
growth of controlled gambling in California. One moratorium
prohibits the state from issuing licenses for new gambling
establishments. The other limits the amount that controlled
gambling can expand in local jurisdictions to no more than 24.99
percent compared to the amount that was authorized on January 1,
1999. Most local jurisdictions have modified their gambling
ordinances to realize the maximum amount of growth authorized by
law.
According to sources who broadly support this bill, they say
that "California has had a longstanding policy against the
proliferation of gambling establishments." They went further by
saying "Since 1995, California has discouraged and precluded
additional cities and counties from adopting ordinances
providing for the expansion of gambling. The Governor adopted
an executive order discouraging casinos in the urban area.
AB 2193
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"Dormant" licenses are those that have been surrendered,
withdrawn, or were temporary and have not been renewed.
However, those licenses are still eligible to be reactivated
pending regulations by the California Gambling Control
Commission.
In support . According to the supporters of this bill, the
existing moratorium that is set to expire in 2015 needs to be
extended for an additional five years because communities that
benefit from card room revenues currently are not willing to
commit to long term building projects unless they can be assured
that the revenue will continue to be available for, at least,
another ten years. Supporters contend that doing away with the
moratorium and allowing additional card rooms to open would
dilute the revenue within existing communities.
Related legislation . SB 213, Florez, 2009 Legislative Session
would have extended the moratorium on the issuance of new
gambling licenses for card rooms from January 1, 2015 to January
1, 2020. Vetoed by the Governor on October 11, 2009.
REGISTERED SUPPORT / OPPOSITION :
Support
California Cities for Self Reliance Joint Powers Authority
California Gaming Association
Commerce Casino
Hawaiian Gardens Casino
Hollywood Park Casino
Lucky Chances Casino
Village Club
Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531