BILL ANALYSIS                                                                                                                                                                                                    



                                                                 AB 2197
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          Date of Hearing:   April 21, 2010

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                   Joe Coto, Chair
                  AB 2197 (Coto) - As Introduced:  February 18, 2010
           
          SUBJECT  :   Problem and pathological gambling.

           SUMMARY  :    Requires the Office of Problem Gambling (OPG) within  
          the Department of Alcohol and Drug Programs (DADP) to include  
          specific education and awareness outreach efforts within its  
          existing prevention programs, and authorizes OPG to use existing  
          funds to develop a grant program as specified.  Specifically,  
           this bill  :

          1)Requires OPG to include in its problem gambling prevention  
            program the development of problem gambling education and  
            awareness programs that specifically target geographically  
            diverse multicultural populations.

          2)Authorizes OPG to include in its program to support problem  
            and pathological gambling treatment services a grant program  
            for education, outreach, and prevention.  In establishing the  
            grant program, the office may give preference to grant  
            applications that do any of the following:

             a)   Provide matching funds to coordinate efforts and  
               maximize the effectiveness of limited funds to raise  
               awareness and change the behavior of at-risk populations.

             b)   Target geographically diverse multicultural populations.

             c)   Educate youth.

          1)Makes technical and conforming changes to existing law.
           
          EXISTING LAW  :

          1)Establishes the OPG within DADP and sets forth it duties  
            relating to prevention and control of problem and pathological  
            gambling, as defined.  

          2)Requires OPG to develop a problem gambling prevention program,  
            which shall be the first priority for funding appropriated to  
            this office. The prevention program shall be based upon the  








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            allocation priorities established by DADP. 

          3)Requires OPG to develop a program to support treatment  
            services for California residents with problem and  
            pathological gambling issues.  The program shall be based upon  
            the allocation priorities established by DADP.

           FISCAL EFFECT  :   The cost associated with this bill is minor,  
          less than $50,000.

           COMMENTS  : 

           Background  :  The Act was passed establishing, among other  
          things, the Office of Compulsive Gambling (OCG) within the  
          Department of Mental Health.  However, funding for OCG was never  
          appropriated for the next five years.  Then, in 2003, the Office  
          of Problem Gambling was established pursuant to AB 673 (Horton),  
          Chapter 210, Statutes of 2003. 

          In 2003-04, $3 million was appropriated from the Indian Gaming  
          Special Distribution Fund (SDF), however, nearly the entire $3  
          million was not spent and reverted back to the SDF.  In 2004-05,  
          $3 million was included in the May Revision to fund OPG, and the  
          office has since received approximately $3 million each year  
          until fiscal year (FY) 2008-09 whereby the appropriation was  
          increased to $8.2 million.  In addition, beginning in the FY  
          2007-08, OPG began receiving approximately $150,000 a year from  
          additional table fees imposed on card clubs in California.  The  
          approximately $8.4 million is divided between state operations  
          ($1 million for treatment and $3.4 for prevention), and local  
          assistance ($4 million for treatment).  Administrative costs for  
          the program are limited to 10% of the total funding budgeted. 

          When OPG was created, the first priority mandated by the  
          Legislature was to develop a problem gambling prevention program  
          consisting of the following activities and services: 1) A  
          toll-free telephone service for immediate crises management and  
          containment with subsequent referral of problem and pathological  
          gamblers to health providers who can provide treatment for  
          gambling related problems and to self-help groups; 2) Public  
          awareness campaigns that focus on prevention and education among  
          the general public including, for example, dissemination of  
          youth oriented preventive literature, educational experiences,  
          and public service announcements in the media; 3) Empirically  
          driven research programs focusing on epidemiology/prevalence,  








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          etiology/causation, and best practices in prevention and  
          treatment; 4) Training of health care professionals and  
          educators, and training for law enforcement agencies and  
          nonprofit organizations in the identification of problem  
          gambling behavior and knowledge of referral services and  
          treatment programs; and 5) Training of gambling industry  
          personnel in identifying customers at risk for problem and  
          pathological gambling and knowledge of referral and treatment  
          services.

          In designing and developing the overall program, DADP was  
          directed to do all of the following: 1) Develop a statewide plan  
          to address problem and pathological gambling; 2) Adopt any  
          regulations necessary to administer the program.; 3) Develop  
          priorities for funding services and criteria for distributing  
          program funds; 4) Monitor the expenditures of state funds by  
          agencies and organizations receiving program funding; and 5)  
          Evaluate the effectiveness of services provided through the  
          program.

           Purpose of the bill  :  AB 1577 is intended to update and bring  
          consistency to the state's problem and pathological gambling  
          laws.  For example, the law currently requires OPG's problem  
          gambling treatment efforts to include services that are relevant  
          to the needs of diverse multicultural populations, but the law  
          does not require OPG to provide any gambling education or  
          prevention services for such populations.  

          Additionally, the law requires OPG's problem gambling prevention  
          program to target youths, but it does not require its treatment  
          program to provide problem gambling services to youths.  AB 1577  
          eliminates those inconsistencies in the law by ensuring OPG's  
          programs provide prevention and treatment services to  
          geographically diverse multicultural populations and our youth.

          This measure will require OPG to develop problem gambling  
          education and awareness programs that specifically target  
          geographically diverse multicultural populations.  The bill also  
          authorizes OPG to develop a grant program for education,  
          outreach, and prevention.  Preference may be given to the  
          following:  1) grant applicants that provide matching funds to  
          coordinate efforts and          maximize the effectiveness of  
          limited funds to raise awareness and change the behavior of  
          at-risk populations; 2) applicants that target geographically  
          diverse multicultural populations; and, 3) applicants that  








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          educate youth.

          According to the OPG, all administrative expenses will be funded  
          from existing resources in the revenue that is currently  
          received.

           Prior legislation  :  AB 1577 (Coto) of 2009-2010 Legislative  
          Session.  Would have required OPG within the Department of  
          Alcohol and Drug Programs (DADP) to include specific education  
          and awareness outreach efforts within its existing prevention  
          programs, and authorizes OPG to use existing funds to develop a  
          grant program as specified.  (Vetoed by the Governor)

          SB 1616 (Florez), 2007-2008 Legislative Session.  Would have  
          authorized OPG to establish training programs to increase the  
          number of therapists who can treat problem or pathological  
          gamblers.  Would have required OPG to establish a grant program  
          to designing and implement the therapist training program and a  
          stepped-care treatment program.  (Held in Senate Appropriations)

          AB 1339 (Torrico), 2007-2008 Legislative Session.  Would have  
          required OPG to develop a statewide strategic plan for the  
          prevention, intervention, treatment and research of problem and  
          pathological gambling behaviors in California.  Would have  
          required OPG to pursue policy changes and funding requests to  
          achieve the goals and objectives of the strategic plan.  (Vetoed  
          by the Governor)

          AB 673 (Horton), Chapter 210, Statutes of 2003.  Renamed and  
          relocated the Office of Compulsive Gambling within the  
          Department of Mental Health to the Office of Problem    Gambling  
          within the Department of Alcohol and Drug Programs.  Requires  
          OPG to develop a problem gambling prevention program and a  
          program to support treatment services.  Made the first  
          appropriation from the SDF to fund OPG.
          
          REGISTERED SUPPORT / OPPOSITION  :   

           Support 
          
          None on file

           Opposition 
           
          None on file








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          Analysis Prepared by  :    Eric Johnson / G. O. / (916) 319-2531