BILL ANALYSIS
Bill No: AB
2193
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2193 Author: Hall
As Introduced: February 18, 2010
Hearing Date: June 29, 2010
Consultant: Art Terzakis
SUBJECT
Gambling: moratorium
DESCRIPTION
AB 2193 extends the gambling moratorium related to the
expansion of cardrooms and the issuance of new cardroom
licenses from January 1, 2015 to January 1, 2020.
EXISTING LAW
Existing law, the Gambling Control Act, generally regulates
the licensing and operation of gambling establishments.
The Act is administered by the California Gambling Control
Commission (CGCC) and is enforced by the Department of
Justice (DOJ)
Existing law expresses the intent of the Legislature that
nothing in the Gambling Control Act shall be construed to
preclude any city, county, or city and county from
prohibiting any gambling activity, from imposing more
stringent local controls or conditions upon gambling than
are imposed by the Gambling Control Act or by CGCC.
Existing law, Article 13 (commencing with Section 19960 of
the Business and Professions Code), addresses the authority
of local governments to approve the existence and expansion
of gambling establishments. That article prohibits a local
jurisdiction from issuing a gambling license with respect
to any gambling establishment unless a specified measure
AB 2193 (Hall) continued
Page 2
was adopted by the voters of that jurisdiction, or the
gambling establishment is located in a jurisdiction that,
prior to January 1, 1984, expressly authorized the
operation of one or more cardrooms. In addition, Sections
19961 and 19962 limit the authority of a local jurisdiction
to expand gambling, including the authority to increase the
number of tables that a gambling establishment may operate.
Existing law, Section 19962, imposes a moratorium on the
authority of a local jurisdiction to amend its gambling
ordinance to provide for an expansion of gambling. This
moratorium remains in effect until January 1, 2015.
Existing law, Section 11961, defines an "expansion of
gambling," in part, as a change that results in an increase
of 25% or more in the number of tables a gambling
establishment may operate based on the number of tables
authorized on January 1, 1996.
Existing law, Section 19963, prohibits CGCC, until January
1, 2015 , from issuing a gambling license for a gambling
establishment that was not licensed to operate on December
31, 1999, unless an application to operate that
establishment was on file with DOJ prior to September 1,
2000.
BACKGROUND
There are currently two statutory moratoriums that restrict
the growth of card clubs 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% 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. Both of these moratoriums are set expire on
January 1, 2015.
Purpose of AB 2193: According to proponents of this
measure, the existing moratorium that is set to expire on
January 1, 2015 needs to be extended at this point for an
additional five years because communities that currently
benefit from a stable card room revenue source are
unwilling to commit to long term civic projects and
AB 2193 (Hall) continued
Page 3
activities unless they can be assured that the revenue
stream from cardrooms will continue to be available for at
least another 10 years. Proponents contend that
eliminating the moratorium altogether and allowing
additional card rooms to open would simply dilute the
revenue within existing communities.
Arguments in Opposition: Writing in opposition, Bay 101
Card Club states, "While extending the moratorium may
protect some existing card clubs from competition, it has
the effect in our community of providing an artificial
ceiling to tax revenues and jobs by not allowing Bay 101 to
open more tables for players who arrive at our club and
currently wait to play." Bay 101 also references the
Assembly Appropriations Committee analysis of AB 2193,
dated May 4, 2010, which recognized that "limits on
expansions of existing card clubs could result in millions
of dollars in forgone revenue annually - the amount of
foregone revenue is unknown, but could be in the millions
of dollars annually."
Staff Comments: SB 213 (Florez) of 2009, a substantially
similar measure, was vetoed by the Governor. In his veto
message the Governor stated, "There is no compelling
rationale for extending the gambling moratorium at this
time, as a similar extension was approved just three years
ago. The gambling moratorium under existing law does not
expire until 2015, which gives the Legislature ample time
to evaluate whether the existing moratorium should be
extended."
PRIOR/RELATED LEGISLATION
SB 213 (Florez) 2009-10 Session. Among other things, would
have extended the moratorium on the issuance of new
gambling establishments from January 1, 2015 to January 1,
2020. (Vetoed by Governor)
AB 441 (Hall) 2009-10 Session. Increases the number of
gaming tables that a local jurisdiction may authorize
without voter approval, as specified. (Pending in Senate
Appropriations)
AB 293 (Mendoza) Chapter 233, Statutes of 2009. Made
numerous changes to the Gambling Control Act, including
replacing references to "gambling establishments" with
"gambling enterprises" in specific sections of the Act.
AB 2193 (Hall) continued
Page 4
SB 1697 (Florez) 2007-2008 Session . Among other things,
would have allowed CGCC to consider applications to
activate expired gambling licenses. (Died in Assembly G.O.
Committee)
AB 560 (Richardson) 2007-2008 Session . Among other things,
would have allowed CGCC to consider applications to
activate expired gambling licenses provided that the card
club remains in the same city, county, or city and county
in which it was located. (Died in Assembly G.O. Committee)
AB 163 (Mendoza) Chapter 647, Statutes of 2008. Authorized
a city or county, without voter approval, to amend an
ordinance to increase the number of gambling tables that
may be operated in a gambling establishment by 3 tables if
the ordinance in effect on July 1, 2007, provided for 5 to
8 tables, and by 4 tables if the ordinance in effect on
July 1, 2007, provided for 9 to 12 tables.
SB 730 (Florez) Chapter 438, Statutes of 2007 . Among other
things, authorized CGCC to issue licenses for a two-year
period and required CGCC to establish a portable key
employee license program.
AB 1973 (Bermudez) Chapter 854, Statutes of 2006 . Among
other things, extended the moratorium on the expansion of
gambling from January 1, 2010, to January 1, 2015.
SB 1198 (Florez) Chapter 181, Statutes of 2006 . Deleted
"wagering limits" from the list of items that are
considered expansion of gambling pursuant to the moratorium
on the expansion of existing gaming in a locality.
AB 635 (Bermudez) Chapter 694, Statutes of 2005 . Permitted
local governments to revise their ordinances limiting the
number of tables in card rooms by 24.99 percent or two
tables, whichever is greater, as compared with the level or
number operated or authorized on January 1, 1996, without
voter approval.
AB 864 (Firebaugh) Chapter 872, Statutes of 2004 .
Permitted cities and counties to adopt ordinances
permitting the expansion of gambling that result in less
than a 25 percent increase, without voter approval.
AB 2193 (Hall) continued
Page 5
SB 814 (Vincent) Chapter 799, Statutes of 2003 . Authorized
CGCC to renew gambling licenses for a period of up to 2
years. Specified that for any license issued for more than
one year the licensee shall continue to pay the annual
gambling license fee. Also, extended the moratorium on the
expansion of gambling from January 1, 2007 to January 1,
2010.
AB 2431 (Governmental Organization Committee) Chapter 738,
Statutes of 2002 . Made numerous clarifying, technical and
code maintenance changes within the Gambling Control Act.
SB 952 (Governmental Organization Committee) Chapter 945,
Statutes of 2001. Made numerous changes pertaining to the
CGCC and the duties of the Division of Gambling Control.
SB 8 (Lockyer) Chapter 867, Statutes of 1997 . Repealed the
Gaming Regulation Act, and instead enacted the Gambling
Control Act, which provided for DOJ to investigate and
enforce controlled gambling in the state. It also
established CGCC to regulate gambling in this state to
issue, suspend, or revoke gambling licenses.
SB 100 (Maddy) Chapter 387, Statutes of 1995. Established
the original moratorium on card room expansion, prohibiting
the creation of new card rooms until January 1, 2001.
SUPPORT: As of June 25, 2010:
California Cities for Self Reliance - Joint Powers
Authority (sponsor)
California Gaming Association
Capitol Casino
City of Commerce
City of Hawaiian Gardens
Commerce Casino
Hollywood Park Casino
Lucky Chances
Morongo Band of Mission Indians
Village Club
OPPOSE: As of June 25, 2010:
Bay 101 Card Club
FISCAL COMMITTEE: Senate Appropriations Committee
AB 2193 (Hall) continued
Page 6
**********