BILL ANALYSIS
SB 213
Page 1
SENATE THIRD READING
SB 213 (Florez)
As Amended June 18, 2009
Majority vote
SENATE VOTE :32-3
GOVERNMENTAL ORGANIZATION 18-0 APPROPRIATIONS 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, | |Fuentes, Hall, Harkey, |
| |V. Manuel Perez, | |Miller, |
| |Portantino, Silva, | |Nielsen, John A. Perez, |
| |Torres, Torrico, Tran | |Skinner, |
| | | |Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Hill |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Extends the moratorium on the issuance of new gambling
licenses for card rooms from January 1, 2015 to January 1, 2020,
and makes other related changes regarding the regulation of
gambling. Specifically, this bill :
1)Prohibits a governing body of electors representing a city,
county, or city and county from authorizing or expanding any
legal gaming beyond those licenses that were permitted on
January 1, 1996, and, extends the sunset date from January 1,
2015 to January 1, 2020.
2)Limits the California Gambling Control Commission (CGCC) from
issuing a gambling license for a card room that was not
licensed to operate on December 31, 1999, unless an
application to operate that establishment was on file with the
Department of Justice (DOJ) before September 1, 2000, and,
extends the sunset date from January 1, 2015 to January 1,
2020.
EXISTING LAW :
SB 213
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1)Establishes the Gambling Control Act (Act) and provides for
the licensure of certain individuals and establishments
involved in various gambling activities, and for the
regulation of those activities, by the CGCC.
2)Provides for the enforcement of those activities by DOJ.
3)Provides that any violation of the Act for which a penalty is
not provided is punishable as a misdemeanor.
4)Prohibits, until January 1, 2015, the governing body and the
electors of a county, city, or city and county from
authorizing or expanding any legal gaming beyond that
permitted on January 1, 1996.
5)Prohibits the CGCC, until January 1, 2015, from issuing a
gambling establishment that was not licensed to operate on
December 31, 1999, except as specified.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill results in forgone revenues for the
Gambling Control Fund from 2014-15 through 2019-20. The amount
of forgone revenue is unknown, but could be in the millions of
dollars annually.
COMMENTS : The Gambling Control Act of 1998 (Act) was
established to provide a comprehensive scheme for statewide
regulation of legal gambling. Among several things, the Act
provided that no new gambling establishment may be opened in a
city, county, or city and county, in which a gambling
establishment was not operating on and before January 1, 1984,
except upon the affirmative vote of the electors of that local
jurisdiction. Local jurisdictions may adopt a gambling
ordinance governing items such as the hours of operation of
gambling at those premises, patron security, location of
premises, wagering limits and the number of tables permitted in
those premises and in the jurisdiction as a whole.
There are currently two statutory moratoriums that restrict the
growth of controlled gambling in California. One moratorium
prohibits the state from issuing licenses for new gambling
establishments. The other limits the amount that controlled
gambling can expand in local jurisdictions to no more than
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24.99% compared to the amount that was authorized on January 1,
1999. Most local jurisdictions have modified their gambling
ordinances to realize the maximum amount of growth authorized by
law.
According to sources who support this bill, they say that
"California has had a longstanding policy against the
proliferation of gambling establishments." The supporters went
further by saying, "Since 1995, California has discouraged and
precluded additional cities and counties from adopting
ordinances providing for the expansion of gambling. The
Governor adopted an executive order discouraging casinos in the
urban area." On May 18, 2005, Governor Schwarzenegger issued a
proclamation on tribal gaming policy, which includes an
explanation on his position on Class III gaming in urbanized
areas.
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531
FN: 0002603