BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2596|
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THIRD READING
Bill No: AB 2596
Author: Portantino (D)
Amended: 6/17/10 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 6/29/10
AYES: Wright, Harman, Calderon, Florez, Negrete McLeod,
Padilla, Price, Yee
NO VOTE RECORDED: Denham, Oropeza, Wyland
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 74-0, 6/2/10 - See last page for vote
SUBJECT : Gambling: licenses
SOURCE : Author
DIGEST : This bill makes various substantive changes to
the Gambling Control Act relative to license renewal and
payment of annual fees.
ANALYSIS : Under existing law, the Gambling Control Act
of 1997 established the California Gambling Control
Commission (CGCC). Among other responsibilities, the Act
grants the CGCC licensing jurisdiction over the operation
of card clubs and of all persons having an interest in the
operation of card clubs. The Bureau of Gambling Control
has the task of investigating and enforcing controlled
gambling activities in California.
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Existing law provides that licenses renewed on or before
July 31, 2008, shall be for the renewal period in effect at
the time of the renewal but shall not expire any sooner
than 15 months after the approval of the renewal
application, and that licenses renewed on or after August
1, 2008, shall expire 24 months after the date of the
approval of the renewal application or after the expiration
of the prior license, whichever is later, as described.
Existing law requires that an application for renewal of a
license application be filed with the commission no later
than 120 days prior to expiration of the current license.
Existing law requires the CGCC to act upon any application
for renewal prior to the date of expiration of the current
license and, upon renewal of any owner license, the
commission shall issue an appropriate renewal certificate
or validating device or sticker.
Existing law provides that any owner licensee, who deals,
operates, carries on, conducts, maintains, or exposes for
play any gambling game after the expiration date of the
gambling license is liable to the state for all license
fees and penalties that would have been due upon renewal.
Under existing law, if an owner licensee fails to renew the
gambling license, the CGCC may order the immediate closure
of the premises and a cessation of all gambling activity
therein until the license is renewed.
Existing law provides that the CGCC may deem an applicant
suitable to hold a state gambling license even if the
applicant has a financial interest in another business
conducting lawful gambling in California, or another
business conducting lawful gambling outside of California
that would violate California law if conducted within the
state.
Existing law stipulates that an application for a license
or a determination of suitability shall be accompanied by
the deposit of a sum of money that will be adequate to pay
the anticipated costs and charges incurred in the
investigation and processing of the application, as
specified. An applicant may be required to deposit any
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additional sums as are required to pay final costs and
charges of the investigation.
This bill:
1. Provides that the California Gambling Control Commission
(CGCC) may extend an owner's license for up to 180 days
if it falls behind in processing renewal applications
and makes it explicit that a gambling license shall be
renewed bieiennially.
2. Authorizes the CGCC to assess reasonable late penalties
in order to expedite the processing of a renewal
application that is not filed in a timely manner.
3. Authorizes the CGCC to assess a late penalty of up to
three times the renewal fee for late applications.
4. Adds a new provision to the Act that allows the CGCC to
close a gambling establishment for up to 90 days if an
owner licensee fails to make timely payment of annual
fees.
Comments
According to the author's office, under existing law, the
CGCC and Bureau of Gambling Control do not have the
authority to assess late penalties on those who file their
applications for renewal of their gambling licenses late.
This has become a significant problem, so much so that the
CGCC recently held a hearing to discuss 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
in a tardy fashion. The CGCC responded that they do not
have the legal authority to assess late penalties on those
who file their applications for renewal late. According to
the author's office, this bill has been introduced to
provide the CGCC with an alternative sanction for those who
do not file for the renewal of their gambling licenses in a
timely fashion.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
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SUPPORT : (Verified 8/3/10)
Commerce Club
Hollywood Park Casino
Village Club
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,
DeVore, Emmerson, Eng, Evans, Feuer, Fletcher, Fong,
Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick,
Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill,
Huber, Huffman, Jeffries, Jones, Knight, Logue, Bonnie
Lowenthal, Ma, Mendoza, 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
NO VOTE RECORDED: Tom Berryhill, Lieu, Miller, Norby, Audra
Strickland, Vacancy
TSM:do 8/4/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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