BILL ANALYSIS
AB 2596
Page 1
Date of Hearing: April 21, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 2596 (Portantino) - As Introduced: February 19, 2010
SUBJECT : Gambling: licenses.
SUMMARY : Clarifies the rules of engagement for California
Gambling Control Commission (CGCC) in the process for card room
owners to process renewal application for a gambling license.
Specifically, this bill :
1)Allows the commission to assess reasonable late penalties in
order to expedite the processing of a license renewal
application if it is not filed in a timely manner.
2)Provides that where a complete renewal application has not
been submitted within 30 days of the expiration of the
existing license and notice has been given to the license, the
commission may determine that the license is abandoned.
EXISTING LAW :
1)Provides for the licensure of certain individuals and
establishments involved in various gambling activities, and
for the regulation of those activities, by the California
Gambling Control Commission.
2)Provides for the enforcement of gambling activities by the
Department of Justice, Bureau of Gambling Control.
3)Requires that an application for renewal of a license
application be filed with the California Gambling Control
Commission no later than 120 days prior to expiration of the
current license.
FISCAL EFFECT : Unknown.
COMMENTS : This bill seeks to address the CGCC and how they
administer the application renewal process for card rooms.
Author says, "Under existing law the Gambling Control Commission
and the Bureau of Gambling Control do not have the authority to
assess late penalties on those who file their applications for
AB 2596
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renewal of their gambling licenses late." In addition, author
states that this lack of authority has become a significant
problem.
In support . According to the sponsor of this bill, the CGCC
recently held a hearing on this issue to discuss potential
remedies which could be assessed for those who file their
applications late. During this hearing, it was suggested that
the CGCC assess late penalties on those who file their
applications late. The CGCC responded that they lack the legal
authority to assess late penalties on those who file their
applications for late renewal.
Related legislation . AB 2193 (Hall, 2010 Legislative Session)
extends the moratorium on the issuance of a new gambling license
for card rooms from January 1, 2015 to January 1, 2020. In
Assembly Governmental Organization Committee. Scheduled to be
heard on April 21, 2010.
Prior legislation . SB 213 (Florez, 2009 Legislative Session)
would have extended the moratorium on the issuance of a new
gambling license for card rooms from January 1, 2015 to January
1, 2020. Vetoed by the Governor on October 11, 2009.
AB 293 (Mendoza, Chapter 233, Statutes of 2009) allows limited
liability companies (LLCs) and its officers, managers, members,
or owners to be eligible for a state gambling license; imposes
on all partnerships and provides that a partnership, instead of
being formed under laws of the state to be eligible for a
gambling license must be registered in the state and provide
specific supplemental information; and requires the California
Gambling Control Commission to develop procedures to allow for
the continuous operation of licensed gambling establishments in
cases including the death or incapacity of a license.
AB 163 (Mendoza, Chapter 647, Statutes of 2008) adds a new
section to the Gambling Control Act to authorize a local
government to amend its gambling ordinance to increase the
number of tables that may be operated by small card clubs.
AB 356 (Mendoza, Chapter 493, Statutes of 2007) authorizes the
California Gambling Control Commission to delegate to staff the
approval of the articles of incorporation, statements of limited
partnership, and other entity filings that are required to
specifically state that gambling is one of the purposes for
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which the business entity is formed. Increases, from 3 to 5,
the number of collection rates that may be established per table
in a card club.
SB 289 (Vincent, Chapter 294, Statutes of 2007) authorizes the
California Gambling Control Commission to deem a person suitable
to hold a state gambling license even if the person has a
specified financial interest in a business that conducts
gambling activities outside the state that would violate
California law if conducted within the state.
SB 730 (Florez, Chapter 438, Statutes of 2007) provides for a
number of changes to the licensing renewal process for gambling
establishments under the Gambling Control Act. This law
streamlines the process and eliminates some of the current
outdated requirements.
REGISTERED SUPPORT / OPPOSITION :
Support
Commerce Club
Hollywood Park Casino
Lucky Chances
Village Club
Opposition
None on file
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531