BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1125|
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UNFINISHED BUSINESS
Bill No: SB 1125
Author: Florez (D)
Amended: 8/16/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 4/13/10
AYES: Wright, Calderon, Denham, Florez, Oropeza, Padilla,
Price, Yee
NO VOTE RECORDED: Harman, Negrete McLeod, Wyland
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/3/10
AYES: Kehoe, Cox, Corbett, Denham, Leno, Price, Walters,
Wolk, Wyland, Yee
NO VOTE RECORDED: Alquist
SENATE FLOOR : 33-2, 6/2/10
AYES: Alquist, Ashburn, Calderon, Cedillo, Corbett,
Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez,
Hancock, Harman, Huff, Kehoe, Leno, Liu, Lowenthal,
Negrete McLeod, Padilla, Pavley, Price, Romero, Runner,
Simitian, Steinberg, Strickland, Walters, Wolk, Wright,
Wyland, Yee
NOES: Aanestad, Hollingsworth
NO VOTE RECORDED: Cogdill, Oropeza, Wiggins, Vacancy,
Vacancy
ASSEMBLY FLOOR : 68-1, 8/23/10 - See last page for vote
SUBJECT : Gambling Control Act
SOURCE : Commerce Club
CONTINUED
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DIGEST : This bill 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.
Assembly Amendments delete the provision that provided that
only the Department of Justice (DOJ) would establish an
enhanced fee schedule for expedited applications, (2)
delete the provision allowing persons over 18 to be
employed in a gambling establishment, and (3) add a
provision that a gambling establishment conducting a
controlled game approved by DOJ shall have a defense
against an action brought against the establishment if the
game is subsequently found to be unlawful.
ANALYSIS : Existing law, the Gambling Control Act,
provides for the licensure of certain individuals and
gambling 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 DOJ.
Existing law 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 (Bureau) within DOJ, will be adequate to pay the
anticipated costs and charges incurred in the investigation
and processing of the application. Existing law requires
the head of the Bureau to adopt a schedule of costs and
charges of investigation for use as guidelines in fixing
the amount of the deposit.
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 defines "gambling establishment,"
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"establishment," or "licensed premises," to mean one or
more rooms where any controlled gambling or activity
directly related thereto occurs.
Existing law prohibits a person under 21 years of age from
being eligible for a work permit in a gambling
establishment. Existing law also prohibits a person under
21 years of age from entering the premises of a licensed
gambling establishment, except as provided.
Existing law 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.
Existing law defines "house" to mean the gambling
enterprise, and any owner, shareholder, partner, key
employee, or landlord thereof.
Existing law 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.
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 within
DOJ in the manner in which it was approved, the approval
by 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.
Comments
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According to the bill's 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. The intent of this bill is to provide some
additional consumer protections to jackpot funds held by
gambling establishments.
The sponsor says that gambling establishments merely hold
these funds in trust for the benefit of the players, as
soon as the funds have been collected and an administrative
fee is deducted.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/24/10)
Commerce Club (source)
Bicycle Casino
Crystal Casino & Hotel
Hollywood Park Casino
Lucky Chances
Oceans Eleven Casino
Village Club
ASSEMBLY FLOOR :
AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall,
Bill Berryhill, Tom Berryhill, Block, Blumenfield,
Bradford, Brownley, Buchanan, Caballero, Charles
Calderon, Carter, Chesbro, Cook, Coto, De La Torre, De
Leon, DeVore, Evans, Feuer, Fletcher, Fong, Fuentes,
Fuller, Galgiani, Gatto, Gilmore, Hagman, Hall, Harkey,
Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,
Jones, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,
Miller, Monning, Nestande, Niello, Nielsen, V. Manuel
Perez, Portantino, Ruskin, Salas, Saldana, Silva,
Skinner, Smyth, Solorio, Audra Strickland, Swanson,
Torlakson, Torres, Torrico, Tran, Villines, John A. Perez
NOES: Gaines
NO VOTE RECORDED: Conway, Davis, Eng, Furutani, Garrick,
Knight, Nava, Norby, Yamada, Vacancy, Vacancy
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TSM:mw 8/24/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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