BILL ANALYSIS
SB 126
Page 1
SENATE THIRD READING
SB 126 (Cedillo)
As Amended August 31, 2009
2/3 vote. Urgency
SENATE VOTE : 38-1
GOVERNMENTAL ORGANIZATION 18-0APPROPRIATIONS 17-0
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|Ayes:|Coto, Anderson, Chesbro, |Ayes:|De Leon, Conway, Ammiano, |
| |Cook, | | |
| |De Leon, Galgiani, Hall, | |Charles Calderon Coto, |
| |Hill, Jeffries, Lieu, | |Davis, |
| |Mendoza, Nestande, | |Duvall, Fuentes, Hall, |
| |V. Manuel Perez, | |Harkey, Miller, John A. |
| |Portantino, Silva, | |Perez, Skinner, Solorio, |
| |Torres, Torrico, Tran | |Audra Strickland, |
| | | |Torlakson, Hill |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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)Allows credit card processing fees would be accounted for
outside of administrative costs but must be deducted from 37%
of proceeds allowable for prizes - not from the proceeds that
would go towards the authorized charitable organization
conducting a remote caller bingo game.
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6)Extends the emergency regulations adopted by the California
Gambling Control Commission to December 31, 2011.
7)Makes other technical and conforming changes.
8)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
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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
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 percent 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
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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
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
FN: 0002679