BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2193 (Hall)
          
          Hearing Date:  08/02/2010           Amended: As Introduced
          Consultant:  Maureen Ortiz      Policy Vote: GO 7-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 2193 extends the moratorium on the issuance  
          of new gambling licenses for card rooms from January 1, 2015 to  
          January 1, 2020.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          Moratorium                               ---unknown potential  
          loss of revenue
                                                                 of  
          several hundred thousand
                                                                      
          annually beginning 2015---                   Special*

          *Gambling Control Fund
          _________________________________________________________________ 
          ____
          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense file.  
          Extending the moratorium on new card clubs could result in  
          significant foregone revenues to the Gambling Control Fund to  
          the extent that new card rooms are precluded from being  
          established from January 1, 2015 until January 1, 2020, which  
          would be partially offset by added workload to the Gambling  
          Control Commission.  Each card club provides revenue on average  
          of approximately $147,000 annually to the state, although the  
          actual revenue depends on the number of tables within the card  
          club, and the amount of wagers generated.

          There are currently two moratoriums that restrict the growth of  
          controlled gambling in California.  One moratorium prevents a  
          local jurisdiction from expanding gambling beyond that permitted  
          on January 1, 1996, but sunsets that prohibition on January 1,  
          2015.   Another prohibitions the Commission from issuing a  
          gambling license for a gambling establishment that was not  










          licensed to operate on December 31, 1999.  This moratorium will  
          also end on January 1, 2015.  AB 2193 extends the sunset  
          provisions of both moratoriums until January 1, 2020.

          In 1997 the Legislature created the Gambling Control Act to  
          provide a comprehensive scheme for statewide regulation of legal  
          gambling.  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, 1996, 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. 

          This bill is similar to SB 213 (Florez) which was vetoed by the  
          Governor on October 11, 2009 who indicated that there was no  
          compelling rationale for extending the moratorium at that time.