BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2596
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2596 (Portantino)
          As Introduced  February 19, 2010
          Majority vote 

           GOVERNMENTAL ORGANIZATION   21-0APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Coto, Anderson,           |Ayes:|Fuentes, Ammiano,         |
          |     |Blakeslee, Chesbro, Cook, |     |Bradford,                 |
          |     |Bradford, Evans,          |     |Charles Calderon, Coto,   |
          |     |Galgiani, Hall,           |     |Davis, Monning, Ruskin,   |
          |     |Hernandez, Hill,          |     |Skinner, Solorio,         |
          |     |Charles Calderon, Ma,     |     |Torlakson, Torrico        |
          |     |Mendoza, Nestande, V.     |     |                          |
          |     |Manuel Perez, Portantino, |     |                          |
          |     |Silva, Torres, Torrico,   |     |                          |
          |     |Tran                      |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Conway, Harkey, Miller,   |
          |     |                          |     |Nielsen, Norby            |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Clarifies the rules of engagement for the California  
          Gambling Control Commission (CGCC) in the process for cardroom  
          owners to process renewal application for a gambling license.   
          Specifically,  this bill  :  

          1)Allows the CGCC 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  
            CGCC 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 CGCC.









                                                                  AB 2596
                                                                  Page  2


          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 CGCC no later than 120 days  
            prior to expiration of the current license.  

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee:

          1)Workload costs for the CGCC to develop regulations related to  
            the late penalties and to implement other administrative  
            changes associated with the penalties under the Gambling  
            Control Fund would likely cost in excess of $35,000 in  
            2010-2011 and over $115,000 in 2011-12.  [Gambling Control  
            Fund]

          2)The CGCC estimates that the late penalties would generate  
            approximately $17,000 per year in additional revenue for the  
            Gambling Control Fund. 

           COMMENTS  :   According to the author, this bill seeks to address  
          the CGCC and how they administer the application renewal process  
          for cardrooms.  


           Analysis Prepared by  :    Rod Brewer / G. O. / (916) 319-2531 


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