BILL ANALYSIS
SB 1125
Page 1
SENATE THIRD READING
SB 1125 (Florez)
As Amended August 16, 2010
Majority vote
SENATE VOTE :33-2
GOVERNMENTAL ORGANIZATION 18-0APPROPRIATIONS 17-0
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|Ayes:|Coto, Anderson, |Ayes:|Fuentes, Conway, |
| |Blakeslee, Chesbro, Cook, | |Bradford, |
| |Evans, Galgiani, Hall, | |Huffman, Coto, Davis, De |
| |Hill, Jeffries, Ma, | |Leon, Gatto, Hall, |
| |Mendoza, Nestande, | |Harkey, Miller, Nielsen, |
| |Portantino, Silva, | |Norby, Skinner, Solorio, |
| |Torres, Torrico, Tran | |Torlakson, Torrico |
| | | | |
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SUMMARY : Amends the Gambling Control Act by clarifying that
jackpot funds are to be held in trust for the players and are
not the property of the gambling establishment; and, provides a
"hold harmless" provision if a controlled game is later deemed
unlawful, as specified. Specifically, this bill :
1)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, as defined, but
are held solely for the benefit of the players.
2)Provides that if a gambling establishment/card club is playing
a controlled game approved by the Bureau of Gambling Control
within the Department of Justice (DOJ) in the manner in which
it was approved, the approval by the DOJ shall be an absolute
defense to any action that is brought through the criminal
courts, administrative courts, or civil courts if the game
being played is later ruled to be deemed unlawful.
EXISTING LAW :
1)Provides for, pursuant to the Gambling Control Act, the
licensure of certain individuals and gambling establishments
involved in various gambling activities, and for the
regulation of those activities, by the California Gambling
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Control Commission.
2)Provides for the enforcement of those activities by the DOJ.
3)Requires that an application for a license or a determination
of suitability be accompanied by a deposit that, in the
judgment of the head of the Bureau of Gambling Control, will
be adequate to pay the anticipated costs and charges incurred
in the investigation and processing of the application.
4)Requires the head of the Bureau of Gambling Control to adopt a
schedule of costs and charges of investigation for use as
guidelines in fixing the amount of the deposit.
5)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 or by
California Gambling Control Commission.
6)Defines "gambling establishment," "establishment," or
"licensed premises," to mean one or more rooms where any
controlled gambling or activity directly related thereto
occurs.
7)Defines "publicly traded racing association" as a corporation
licensed to conduct horse racing and simulcast wagering
pursuant to the Horse Racing Law (Business and Professions
Code Chapter 4, commencing with Section 19400) whose stock is
publicly traded.
8)Defines "qualified racing association" as a corporation
licensed to conduct horse racing and simulcast wagering
pursuant to the Horse Racing Law (Business and Professions
Code Chapter 4, commencing with Section 19400) that is a
wholly owned subsidiary of a corporation whose stock is
publicly traded.
9)Deems a person to be unsuitable to hold a state gambling
license to own a gambling establishment if the person, or any
partner, officer, director, or shareholder of the person, has
any financial interest in any business or organization that is
engaged in any form of gambling prohibited by Penal Code
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Section 330, whether within or without this state.
10)Deems an applicant or licensee suitable to hold a state
gambling license even if the applicant or licensee has a
financial interest in another business that conducts lawful
gambling outside the state that, if conducted within
California, would be unlawful, provided that an applicant or
licensee may not own, either directly or indirectly, more than
1% interest in, or have control of, that business.
11)Prohibits a person less than 21 years of age from being
eligible for a work permit in a gambling establishment.
Existing law also prohibits a person less than 21 years of age
from entering the premises of a licensed gambling
establishment, except as provided.
12)Provides that a banking game does not include a controlled
game if the published rules of the game feature a
player-dealer position and provide that this position must be
continuously and systematically rotated amongst each of the
participants during the play of the game, and if other
specified conditions are met.
13)Defines "house" to mean the gambling enterprise, and any
owner, shareholder, partner, key employee, or landlord
thereof.
14)Defines "gambling enterprise" to mean a natural person or an
entity, whether individual, corporate, or otherwise, that
conducts a gambling operation and that by virtue thereof is
required to hold a state gambling license under this chapter.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there are no significant costs associated with this
bill.
COMMENTS : According to the sponsor, Commerce Club Casino, this
bill seeks to make clear that jackpot funds held by gambling
establishments are not the property of the gambling
establishment, but belong to those who are playing at the club.
This bill's intent is to provide some additional consumer
protections to jackpot funds held by gambling establishments.
The sponsor says that gambling establishments merely hold these
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funds in trust for the benefit of the players, as soon as the
funds have been collected and an administrative fee is deducted.
Analysis Prepared by : Rod Brewer / G. O. / (916) 319-2531
FN: 0005975