BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 126
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          SENATE THIRD READING
          SB 126 (Cedillo)
          As Amended  August 24, 2009
          2/3 vote. Urgency

           SENATE VOTE  :38-1  
           
           GOVERNMENTAL ORGANIZATION 18-0  APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Coto, Anderson, Chesbro,  |Ayes:|De Leon, Conway, Ammiano, |
          |     |Cook,                     |     |                          |
          |     |De Leon, Galgiani, Hall,  |     |Charles Calderon, Coto,   |
          |     |Hill, Jeffries, Lieu,     |     |Davis, Duvall, Fuentes,   |
          |     |Mendoza, Nestande,        |     |Hall, Harkey, Miller,     |
          |     |V. Manuel Perez,          |     |John A. Perez, Skinner,   |
          |     |Portantino, Silva,        |     |Solorio, Audra            |
          |     |Torres, Torrico, Tran     |     |Strickland, Torlakson,    |
          |     |                          |     |Hill                      |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Makes technical code clean-up changes to the remote  
          caller bingo law.  Specifically,  this bill  :    

          1)Deletes reference to school districts in the provisions  
            specifying the organizations that may conduct bingo games and  
            instead authorizes "charitable organizations affiliated with a  
            school district" to conduct bingo games.

          2)Deletes reference to organizations "registered" to conduct  
            those bingo games.

          3)Contains permissive model ordinance language for local  
            governing bodies to use.

          4)Deletes requirement that the California Gambling Control  
            Commission establish criteria for registering manufacturers  
            and distributors.

          5)Extends the emergency regulations adopted by the California  
            Gambling Control Commission to December 31, 2011.

          6)Makes other technical and conforming changes.








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          7)Contains an urgency clause allowing this bill to take effect  
            immediately upon enactment.

           EXISTING LAW  :  

          1)The Legislature, by statute, may authorize cities and counties  
            to provide for bingo games, but only for charitable purposes.

          2)Permits cities, counties, and cities and counties to allow  
            remote caller bingo games to be conducted by specified tax  
            exempt and nonprofit organizations for charitable purposes,  
            subject to provisions of law which, if violated, constitute a  
            crime. 

          3)Authorizes specified tax-exempt and nonprofit organizations  
            that have been incorporated or in existence for three years or  
            more and that are not organized for the primary purpose of  
            operating bingo to conduct remote caller bingo games no more  
            than one day per week.

          4)Defines a "remote caller bingo game" as a game of bingo in  
            which numbers or symbols on randomly drawn plastic balls are  
            announced by a person present at the site at which the live  
            game is conducted, and audio and video technology links  
            in-state facilities for the purpose of transmitting the remote  
            calling of a live bingo game from a single location to  
            multiple locations.

          5)Requires remote caller bingo games to be played using  
            traditional paper or other tangible bingo cards and daubers,  
            and shall not be played by using electronic devices, except  
            card-minding devices.

          6)Requires an authorized organization to provide the California  
            Gambling Control Commission (CGCC) with at least 30 days  
            advanced written notice of its intent to conduct remote caller  
            bingo games, and submit specified information about the  
            organizations, locations, vendors, and licensees involved in  
            the operation of the games, as well as, a copy of the local  
            ordinance for the counties in which the games will be played.

          7)Allows affiliated organizations to cosponsor remote caller  
            bingo games or 10 unaffiliated organizations to cosponsor  








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            remote caller bingo games provided the games do not occur at  
            more than 10 locations.  Cosponsoring organizations must enter  
            into and provide CGCC with a copy of written agreements  
            setting forth specified information, such as, how the expenses  
            and proceeds of the game are to be allocated among the  
            participating organizations, the bank accounts into which all  
            receipts are to be deposited and from which all prizes are to  
            be paid, and how game records are to be maintained and  
            subjected to annual audit.

          8)Limits an organization's overhead costs, as defined, to not  
            exceed 20% of gross sales, except for one-time, nonrecurring  
            capital acquisitions.

          9)Limits the value of prizes awarded during the conduct of any  
            remote caller bingo game to not exceed 37% of the gross  
            receipts for that game.

          10)Requires CGCC to regulate remote caller bingo, including, but  
            not limited to, licensure and operations.  The CGCC shall  
            license and register any person that conducts remote caller  
            bingo or any person that provides supplies or equipment  
            designed for the play of remote caller bingo.

          11)Requires all equipment used for remote caller bingo to be  
            approved in advance by CGCC.

          12)Directs the CGCC to adopt appropriate emergency regulations  
            as soon as possible, but no later than May 1, 2009, in order  
            to avoid delays in implementing regulations governing remote  
            caller bingo and to avoid disruption of fundraising efforts by  
            nonprofit organizations.

           FISCAL EFFECT  :   According to the Assembly Appropriations  
          Committee, there are no significant costs associated with this  
          bill.

           COMMENTS  :  According to the author's office, this bill was  
          introduced to correct technical, non-controversial errors,  
          clarifications, and/or omissions in the statute created by SB  
          1369 (Cedillo and Battin), Chapter 748, Statutes of 2008, the  
          law that established policies and procedures involving remote  
          caller bingo and card-minding devices.  Remote caller bingo is  
          based on the traditional game of bingo.  The major differences  








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          between remote caller bingo and traditional bingo is that remote  
          caller bingo allows for the transmission of an audio and video  
          signal of a live bingo game from one organization (a Rotary  
          Club, for example) located in a local jurisdiction that has  
          adopted a remote caller bingo ordinance to other affiliated  
          organizations (other Rotary Clubs) located in other local  
          jurisdictions across the state that have also adopted remote  
          caller bingo ordinances.


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

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