BILL ANALYSIS
SB 1090
Page 1
Date of Hearing: June 16, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
SB 1090 (Cedillo) - As Amended: April 6, 2010
SENATE VOTE : 32-0
SUBJECT : Bingo: remote caller bingo
SUMMARY : Modifies the model ordinance language contained in
the Remote Caller Bingo Act of 2008 (Act). Specifically, this
bill :
1)Allows an organization to file, along with its application to
the local licensing official to operate a bingo game,
"appropriate documentation" instead of "a certificate issued
by the Franchise Tax Board (FTB)" to demonstrate that the
applicant is an eligible tax exempt organization authorized to
operate a remote caller bingo game.
EXISTING LAW :
1)Provides, in the California Constitution, Article IV, Section
19 (c) that the Legislature, by statute, may authorize cities
and counties to allow for the play of 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 non-profit organizations for charitable purposes,
subject to provisions of law which, if violated, constitute a
crime.
3)Authorizes specified tax-exempt and non-profit 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
SB 1090
Page 2
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)Contains "permissive model ordinance" language which local
jurisdictions may adopt to authorize remote caller bingo.
FISCAL EFFECT : This bill is keyed non-fiscal.
COMMENTS : In 2008, the Legislature passed, and the Governor
signed into law, the Act (SB 1369, Cedillo and Battin, Chapter
748, Statutes of 2008), which allows qualified non-profits to
operate "remote caller" bingo games.
Once the Act was chaptered, technical errors and omissions were
identified by the CGCC. Charities have also raised issues as
they organize themselves to apply and conduct the game.
According to the author, this bill is intended to clean-up
language and fine-tune implementation issues that have arisen as
charities and local governments take steps toward authorizing
and conducting the games.
Background . Primarily, the Act banned the use of electronic
bingo (E-bingo) machines, authorized the play of remote caller
bingo in jurisdictions that have a remote caller bingo
ordinance, and created a mitigation fund to minimize the impacts
to the charities that previously operated E-bingo machines.
Arguably, remote caller bingo was authorized to create an
alternative or substitute revenue source to compensate charities
for the loss of revenues that they previously realized from the
operation of E-bingo machines. Additionally, other charities
which did not operate E-bingo machines viewed remote caller
SB 1090
Page 3
bingo as a new opportunity to raise much needed funds to support
their charitable work and were eager to begin the operation of
remote caller bingo.
Last year, charities indicated that their ability to operate
remote caller bingo games has been delayed due to local
governments not adopting remote caller bingo ordinances. The
charities solution was to place a permissive model ordinance in
law that the locals could use as a template to adopt their own
remote caller bingo ordinances. In response, amendments were
taken in the Assembly to SB 126 (Cedillo, Chapter 562, Statutes
of 2009) which added a permissive model ordinance to the Act.
This year, the charities raise concern with respect to the
permissive model ordinance in law. Specifically, the charities
argue that it is difficult and time consuming to receive a
certificate issued by the FTB to demonstrate that they are a tax
exempt organization. The charities recommended solution, which
is contained in this bill, is to modify the language in the
permissive model ordinance to require a charity to provide
"appropriate documentation" certifying that it is a tax exempt
organization rather than "a certificate issued by FTB" as
certification of its tax exempt status.
A document that may be useful and is easily accessible to verify
the tax-exempt status of an organization is found on FTB's
Website through the link,
http://www.ftb.ca.gov/businesses/Exempt_organizations/Entity_list
.shtml .
Through this link, FTB provides a published list of all
tax-exempt organizations that have tax-exempt or revoked status.
The list is updated monthly.
In support . California Association of Nonprofits (CAN) supports
this bill. CAN says the technical clarification proscribed in
this bill "cleans up the accountability requirements of current
law, thus protecting the public, at the same time as it helps
nonprofits to generate new revenue to meet community needs in
the face of a struggling economy and diminished government
funding."
Related legislation . SB 1484 (Governmental Organization),
2009-2010 Legislative Session . Corrects an inadvertent
SB 1090
Page 4
drafting error made to the permissive model code contained in
the California Remote Caller Bingo Act relative to the number of
days in a week that an eligible nonprofit organization may
conduct a remote caller bingo game. The change will bring the
model code in line with statute, which provides that eligible
organizations may not operate remote caller bingo more than one
day a week. (Pending in Assembly Governmental Organization
Committee).
Prior legislation . SB 126 (Cedillo), Chapter 562, Statutes of
2009 . Deletes reference to school districts in the provisions
specifying the organizations that may conduct remote caller
bingo games and instead authorizes "charitable
organizations affiliated with a school district" to conduct
remote caller bingo games. Contains permissive model ordinance
language for local governing bodies to use. Deletes requirement
that the California Gambling Control Commission establish
criteria for registering manufacturers and distributors. Makes
other technical and conforming changes.
AB 1036 (Niello), 2009-2010 Legislative Session . Would allow a
maximum of 100 unaffiliated organizations to enter into an
agreement to cosponsor a remote caller bingo game if the game
does not have more than 100 locations. (Died in Assembly
Governmental Organization Committee pursuant to Joint Rule 56).
SB 1369 (Cedillo-Battin), Chapter 748, Statutes of 2008 .
Authorizes nonprofit organizations, mobile-home park
associations, senior citizens organizations, and organizations
affiliated with school districts that have been incorporated or
in existence for three years or more to conduct "remote caller
bingo".
SB 1328 (Cedillo), 2007-2008 Legislative Session . Would have
permitted local jurisdictions to adopt an ordinance to allow
specified not for profit organizations to play remote caller
bingo, as defined. (Held in Senate Governmental Organization
Committee).
REGISTERED SUPPORT / OPPOSITION :
Support
California Association of Nonprofits
SB 1090
Page 5
Opposition
None
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531