BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2193|
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THIRD READING
Bill No: AB 2193
Author: Hall (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-1, 6/29/10
AYES: Harman, Calderon, Florez, Negrete McLeod, Padilla,
Price, Yee
NOES: Wright
NO VOTE RECORDED: Denham, Oropeza, Wyland
SENATE APPROPRIATIONS COMMITTEE : 11-0, 8/12/10
AYES: Kehoe, Ashburn, Alquist, Corbett, Emmerson, Leno,
Price, Walters, Wolk, Wyland, Yee
ASSEMBLY FLOOR : 72-3, 6/1/10 - See last page for vote
SUBJECT : Gambling: moratorium
SOURCE : California Cities for Self Reliance-Joint
Powers Authority
DIGEST : This bill 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.
ANALYSIS : Existing law, the Gambling Control Act (Act),
generally regulates the licensing and operation of gambling
establishments. The Act is administered by the California
CONTINUED
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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
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.
This bill extends the moratorium on the issuance of new
gambling licenses for card rooms from January 1, 2015 to
January 1, 2020.
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Comments
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee analysis:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12
2012-13 Fund
Moratorium unknown
potential loss of revenue
Special*
of several hundred thousand
SUPPORT : (Verified 8/16/10)
California Cities for Self Reliance - Joint Powers
Authority (source)
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
OPPOSITION : (Verified 8/16/10)
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Bay 101 Card Club
ARGUMENTS IN SUPPORT : According to proponents of this
bill, 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
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 this bill,
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."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Blakeslee, Block, Blumenfield, Bradford,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,
Emmerson, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller,
Furutani, Gaines, Galgiani, Garrick, Hagman, Hall,
Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,
Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma,
Mendoza, Miller, Monning, Nava, Nestande, Niello,
Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas,
Saldana, Silva, Skinner, Smyth, Solorio, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, Yamada, John
A. Perez
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NOES: DeVore, Gilmore, Harkey
NO VOTE RECORDED: Tom Berryhill, Eng, Norby, Audra
Strickland, Vacancy
TSM:do 8/16/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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