BILL ANALYSIS                                                                                                                                                                                                    






                                                       Bill No:  SB  
          1484
          
                 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                       Senator Roderick D. Wright, Chair
                           2009-2010 Regular Session
                                 Staff Analysis



          SB 1484  Author:  Committee on Governmental Organization
          As Introduced:  March 8, 2010
          Hearing Date:  April 27, 2010
          Consultant:  Chris Lindstrom


                                     SUBJECT  

                              Remote caller bingo.

                                   DESCRIPTION
           
          SB 1484 makes a technical, conforming change to the  
          permissive model ordinance language found in the Remote  
          Caller Bingo Act of 2008.

          Specifically, the bill conforms the permissive model  
          ordinance language in the Act, which states that remote  
          caller bingo games shall not be conducted on more than two  
          days a week, to state law, which provides that an  
          organization shall not conduct remote caller bingo more  
          than one day a week.

                                   EXISTING LAW

           Existing law provides that the Legislature, by statute, may  
          authorize cities and counties to allow for the play of  
          bingo games, but only for charitable purposes [California  
          Constitution, Article IV, Section 19 (c)].

          Existing law permits cities, counties, and cities and  
          counties to allow remote caller bingo games to be conducted  
          by specified tax exempt and nonprofit organizations for  
          charitable purposes, subject to provisions of law which, if  
          violated, constitute a crime. 





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          Existing law authorizes specified tax-exempt and nonprofit  
          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.

          Existing law 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 calling of a live bingo game from a  
          single location to multiple locations.

          Existing law 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.

          Existing law contains "permissive model ordinance" language  
          which local jurisdictions may adopt to authorize remote  
          caller bingo.  

                                    BACKGROUND
           
           Purpose of the bill  .  SB 1484 is a technical clean-up bill  
          that corrects an error contained in the California Remote  
          Caller Bingo Act.  The bill is intended to prevent local  
          governments from adopting ordinances which may result in  
          charities acting in violation of state law.

          Specifically, the bill corrects an inadvertent drafting  
          error made to the permissive model code language contained  
          in the Act relative to the number of days in a week that an  
          eligible nonprofit organization may conduct a remote caller  
          bingo game.  The permissive model ordinance language in the  
          Act provides that the play of remote caller bingo shall not  
          be more than two times a week.  State law, which is  
          controlling, provides that eligible organizations may not  
          operate remote caller bingo more than one day a week.  

          SB 1484 brings the permissive model ordinance language in  




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          line with state law.

           Background  .  SB 1369 (Chapter 748, Statutes of 2008)  
          authorizes local governments to adopt ordinances for the  
          play of remote caller bingo once a week by specified  
          organizations.  SB 126 (Chapter 562, Statutes of 2009)  
          added a model ordinance in the remote caller bingo law that  
          could be used by local jurisdictions to authorize the play  
          of remote caller bingo no more than two times a week.

          This proposal will eliminate the conflicting language in  
          the Act by bringing the reference in the permissive model  
          ordinance regarding the number of days that eligible  
          organizations may play remote caller bingo per week in line  
          with state law.  

          In 2008, SB 1369 (Chapter 748, Statutes of 2008) was  
          enacted.  Primarily, SB 1369 banned the use of electronic  
          bingo (ebingo) machines.  In addition, SB 1369 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 ebingo 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 ebingo machines.  Additionally, other  
          charities which did not operate ebingo machines viewed  
          remote caller 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 was retarded as a result  
          of 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 (Chapter 562, Statutes of 2009) which  
          added a permissive model ordinance to the Remote Caller  
          Bingo Act.  
           
           Inadvertently, when the permissive model ordinance language  
          was drafted, it specified that remote caller bingo could be  
          operated no more than two times a week when state law  




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          restricts the play of remote caller bingo to one day a  
          week.  SB 1484 brings the language in the permissive model  
          ordinance in line with state law.

                            PRIOR/RELATED LEGISLATION
           
           SB 1090 (Cedillo), 2009-2010 Legislative Session  .  Modifies  
          the permissive model ordinance language contained in the  
          Remote Caller Bingo Act of 2008 to allow an organization to  
          file, along with its application to the local licensing  
          official to operate a bingo game, "appropriate  
          documentation or a certificate issued by the Franchise Tax  
          Board" to demonstrate that the applicant is an eligible tax  
          exempt organization authorized to operate a remote caller  
          bingo game.  (Pending referral in Assembly Rules Committee)
          
           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), 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)




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           SUPPORT / OPPOSITION  :  None on file as of April 23, 2010.

           FISCAL COMMITTEE:   No.


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