BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1125
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 1125 (Florez) - As Amended:  August 2, 2010 

          Policy Committee:                              Governmental  
          Organization Vote:                            18 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes changes to the Gambling Control Act, including  
          creating an expedited licensing process and clarifying that  
          jackpot funds are to be held in trust for the players and are  
          not the property of the card club. Specifically, this bill: 

          1)Requires the Department of Justice (DOJ) to establish an  
            expedited process for licensing applications and background  
            investigations. 

          2)Authorizes DOJ to charge additional fees for the expedited  
            process.

          3)States that a gambling establishment that conducts play of an  
            approved controlled game that is subsequently found to be  
            unlawful shall be protected from any criminal, administrative,  
            or civil action, provided that the game was played in an  
            approved manner and was not played after it was found to be  
            illegal.

          4)Provides that jackpot funds are considered trust funds that  
            are held for the benefit of the players.  These funds are not  
            the property of the gambling establishment, but are held  
            solely for the players.

           FISCAL EFFECT  

          On-going annual workload costs in excess of $500,000 for DOJ to  
          develop and administer an expedited licensing process. This bill  
          allows DOJ to develop an enhanced fee schedule to cover the cost  
          of the process. 








                                                                  SB 1125
                                                                  Page  2


           COMMENTS  

           Rationale  . The intent of this bill is to require Bureau of  
          Gambling Control (BGC) and the California Gambling Control  
          Commission (CGCC) to develop an expedited licensing process for  
          gambling licenses.  In addition, it authorizes them to adopt a  
          fee schedule to cover the costs of the expedited license.  
          Currently, there is no provision under existing law for the BGC  
          and the CGCC to charge an increased amount for the special  
          handling of an application.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081