BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 213|
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UNFINISHED BUSINESS
Bill No: SB 213
Author: Florez (D)
Amended: 6/18/09
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 7-2, 5/14/09
AYES: Harman, Calderon, Florez, Negrete McLeod, Oropeza,
Padilla, Yee
NOES: Wright, Wiggins
NO VOTE RECORDED: Benoit, Denham, Wyland
SENATE APPROPRIATIONS COMMITTEE : 8-0, 5/28/09
AYES: Kehoe, Cox, Corbett, DeSaulnier, Hancock, Leno,
Oropeza, Yee
NO VOTE RECORDED: Denham, Runner, Walters, Wolk, Wyland
SENATE FLOOR : 32-3, 6/3/09
AYES: Aanestad, Alquist, Calderon, Cedillo, Cogdill,
Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny,
Florez, Hancock, Harman, Hollingsworth, Kehoe, Leno, Liu,
Lowenthal, Maldonado, Negrete McLeod, Oropeza, Padilla,
Pavley, Romero, Runner, Steinberg, Strickland, Wolk,
Wright, Wyland, Yee
NOES: Ashburn, Benoit, Wiggins
NO VOTE RECORDED: Dutton, Huff, Simitian, Walters
ASSEMBLY FLOOR : 73-0, 9/8/09 - See last page for vote
SUBJECT : Gambling licenses
SOURCE : Author
CONTINUED
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DIGEST : This bill extends the moratorium on the issuance
of new gambling establishments from January 1, 2015 to
January 1, 2020, and makes other related changes regarding
the regulation of gambling.
Assembly Amendments narrow the bill's provisions to
extending the moratorium.
ANALYSIS : Existing law provides for the licensure of
certain individuals and establishments involved in various
gambling activities, and for the regulation of those
activities, by the California Gambling Control Commission
(CGCC). Existing law provides for the enforcement of those
activities by the Department of Justice (DOJ). Existing
law provides that any violation of the Gambling Control Act
for which a penalty is not provided is punishable as a
misdemeanor.
Existing law expresses the intent of the Legislature that
nothing in the Gambling Control Act shall be construed to
preclude any city, county, or city and county from
prohibiting any gambling activity, from imposing more
stringent local controls or conditions upon gambling than
are imposed by the Gambling Control Act or by CGCC.
Existing law prohibits CGCC, until January 1, 2015, from
issuing a gambling license for a gambling establishment
that was not licensed to operate on December 31, 1999,
unless an application to operate that establishment was on
file with DOJ prior to September 1, 2000.
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 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
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establishment was on file with DOJ before September 1,
2000, and, extends the sunset date from January 1, 2015
to January 1, 2020.
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 24.99 percent 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
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.
SUPPORT : (Verified 9/9/09)
California Cities for Self-Reliance Joint Powers Authority
California Gaming Association
Commerce Club
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Hawaiian Gardens Casino
Hollywood Park Casino
Lucky Chances Casino
Lucky Lady
Village Club
OPPOSITION : (Verified 9/9/09)
Sutter's Place Inc.
ARGUMENTS IN SUPPORT : 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.
The Cities for Self Reliance Joint Powers Authority, in
support of this bill, say some cities receive over 80
percent of their total revenue from their card club,
providing programs and services essential to [their]
community.
Hawaiian Gardens Casino state in support that extending the
sunset date to 2020 "will give city governments like
Hawaiian Gardens and other cities that are highly dependent
on revenue from licensed card rooms sufficient advance
warning if their city revenues are to be jeopardized." A
recent Los Angeles Times Article applauded the Hawaiian
Gardens City Council for using the proceeds from the
Hawaiian Gardens Casino for funding summer school for four
schools that serve students who live in this city.
ARGUMENTS IN OPPOSITION : Sutter's Place Inc., doing
business as Bay 101 Casino, says that "extending the
moratorium an additional five years, from 2015 to 2020,
this bill would prohibit any additional growth of existing
card rooms." Sutter's Place Inc. also maintains that if
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they did not have the "ability to grow over the next eleven
years, normal overhead costs would increase to a point
where many small and mid-size card rooms would be forced
out of business."
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Beall, Bill
Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield,
Brownley, Buchanan, Caballero, Charles Calderon, Carter,
Chesbro, Cook, Coto, Davis, De La Torre, De Leon,
Emmerson, Eng, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Furutani, Gaines, Galgiani, Garrick, Gilmore,
Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman,
Jeffries, Jones, Knight, Krekorian, Lieu, Logue, Bonnie
Lowenthal, Ma, Mendoza, Miller, Nava, Nestande, Niello,
Nielsen, John A. Perez, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Torrico,
Tran, Villines, Bass
NO VOTE RECORDED: Conway, DeVore, Duvall, Hagman, Monning,
Yamada
TSM:nl 9/9/09 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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