BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2193
                                                                  Page  1


           CORRECTED  - 06/02/2010 Technical change (Member name)

          ASSEMBLY THIRD READING
          AB 2193 (Hall)
          As Introduced  February 18, 2010
          Majority vote 

           GOVERNMENTAL ORGANIZATION   21-0APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Coto, Anderson,           |Ayes:|Fuentes, Ammiano,         |
          |     |Blakeslee, Chesbro, Cook, |     |Bradford,                 |
          |     |Bradford, Evans,          |     |Charles Calderon, Coto,   |
          |     |Galgiani, Hall,           |     |Davis,                    |
          |     |Hernandez, Hill,          |     |Monning, Ruskin, Skinner, |
          |     |Charles Calderon, Ma,     |     |Solorio,                  |
          |     |Mendoza, Nestande, V.     |     |Torlakson, Torrico        |
          |     |Manuel Perez, Portantino, |     |                          |
          |     |Silva, Torres, Torrico,   |     |                          |
          |     |Tran                      |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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  :  








                                                                  AB 2193
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          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 CGCC.

          2)Provides for the enforcement of those activities by the DOJ.

          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.

          5)Prohibits the CGCC, until January 1, 2015, from issuing a  
            gambling establishment that was not licensed to operate on  
            December 31, 1999, except as specified.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, as this bill prohibits the expansion of existing card  
          rooms and the issuance of licenses for new card rooms, it  
          results in forgone revenues for the Gambling Control Fund from  
          2014-15 through 2019-20.  The amount of forgone revenue is  
          unknown, but could be in the millions of dollars annually.  A  
          portion of that revenue would likely be offset by additional  
          workload costs.

           COMMENTS  :  The 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. 

          Currently, there are two statutory moratoriums that restrict the  
          growth of controlled gambling in California.  One moratorium  
          prohibits the state from issuing licenses for new gambling  








                                                                  AB 2193
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          establishments.  The other limits the amount that controlled  
          gambling can expand in local jurisdictions to no more than 24.99  
          % 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. 


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


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