BILL NUMBER: SB 383 AMENDED
BILL TEXT
AMENDED IN SENATE JANUARY 4, 2012
AMENDED IN SENATE MAY 27, 2011
AMENDED IN SENATE MAY 11, 2011
AMENDED IN SENATE APRIL 25, 2011
AMENDED IN SENATE MARCH 31, 2011
INTRODUCED BY Senator Wolk
FEBRUARY 15, 2011
An act to amend Sections 216 and 218 of, to repeal
Section 2826.5 of, and to repeal and add Chapter 7.5 (commencing with
Section 2830) of Part 2 of Division 1 of, the Public Utilities Code,
relating to energy. An act to repeal Sections 19850.5
and 19850.6 of the Business and Professions Code, and to amend
Sections 326.3 and 326.5 of the Penal Code, relating to bingo, and
declaring the urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 383, as amended, Wolk. Community-Based Renewable
Energy Self-Generation Program. Remote caller bingo.
The California Constitution allows the Legislature, by statute, to
authorize cities and counties to provide for bingo games for
charitable purposes. Existing law authorizes cities and counties to
permit eligible nonprofit organizations to conduct bingo games and
remote caller bingo games, as defined, for charitable purposes
pursuant to an ordinance that allows those games to be conducted in
accordance with specified requirements. Existing law sets forth a
model ordinance for a city, county, or city and county to authorize
remote caller bingo, and prohibits an organization from conducting
remote caller bingo more than 2 days per week. Existing law requires
an organization authorized to conduct remote caller bingo games to
provide at least 30 days' advance written notice of its intent to
conduct a remote caller bingo game.
This bill additionally would permit a city, county, or city and
county to amend an existing local ordinance that allows bingo games
to be conducted within that jurisdiction, by resolution, to permit
the conduct of remote caller bingo games pursuant to that ordinance,
as specified. The bill would include among those organizations
eligible to conduct remote caller bingo a charitable organization
affiliated with a community college district. The bill would prohibit
an organization from conducting remote caller bingo more than 2 days
per week, but would permit an organization to hold one additional
game, at its election, in each calendar quarter. The bill would
require an organization authorized to conduct remote caller bingo
games to provide at least 10 days' advance written notice of intent
to conduct a remote caller bingo game on a form prescribed by the
city, county, or city and county, and to provide notice within 24
hours if the location of the remote caller bingo game changes. The
bill also would repeal the model ordinance.
Existing law requires the California Gambling Control Commission
to regulate remote caller bingo, including licensure and operation.
Among other things, any person who conducts a remote caller bingo
game and any person who manufactures or otherwise provides equipment
for use in the playing of a remote caller bingo game are required to
be licensed. Existing law also requires the commission to approve all
equipment used for remote caller bingo in advance, to monitor
operation of the transmission and other equipment used for remote
caller bingo, and to monitor the game.
This bill would delete all state licensure requirements for the
conduct of remote caller bingo, and would, instead, require an
organization that is eligible to conduct remote caller bingo games to
register annually with the Department of Justice, as specified. The
bill would require the department to maintain a registry on its
Internet Web site of all organizations registered to conduct remote
caller bingo. The bill would require the department to charge an
annual registration fee of $100, to be deposited into the California
Bingo Fund, to cover the department's actual costs to administer and
enforce these provisions, and would require the department to adopt
regulations in that regard. The bill would require an organization
licensed to conduct remote caller bingo, or a management company
contracted with a licensed organization, to register all of its local
bingo licenses with the department. The bill would authorize the
department to charge a fee to cover the cost of the registration
requirement and would require that registration information be made
available to the public upon request.
The bill would make other technical and conforming changes
relating to the duties of the Department of Justice and the
commission, including setting forth procedures for a city, county, or
city and county, as the local licensing entity, to obtain a
background check from the department. The bill would delete the
requirement that the commission approve all equipment used for remote
caller bingo in advance, but would require the city, county, or city
and county to monitor operation of the transmission and other
equipment used for remote caller bingo and to monitor the game. The
bill would authorize the department to audit the books and records of
a licensed organization or a management company contracted by a
licensed organization to conduct remote caller bingo at any time and
to charge a fee for the audit. The bill would require the audit
information to be made available to the public upon request.
Additionally, the bill would require a management company to retain
an independent California certified public accountant to conduct an
annual audit of its books and records, and would subject a management
company to a civil penalty for filing false information with the
department.
To ensure continuity of remote caller bingo games, this bill
would, until June 1, 2012, authorize a city, county, or city and
county to recognize a state license, work permit, or approval of
equipment that was issued by the commission and in effect on June 30,
2011, as specified. The bill would permit an authorized organization
to contract with a management company to provide business services,
but would require the organization to give notice of the contract to
the city, county, or city and county and to meet other requirements,
as specified. The bill would require the live, physical calling and
broadcast of a remote caller bingo game to be conducted from a
jurisdiction that authorizes by local ordinance the conduct of remote
caller bingo games.
This bill would make additional changes relating to the
requirements for cosponsoring remote caller bingo games, and would
simplify other procedures and requirements applicable to the conduct
of remote caller bingo games.
Under existing law, any violation of the remote caller bingo
provisions described above is a misdemeanor, punishable as specified.
This bill would expand the scope of an existing crime by imposing
different requirements for the conduct of remote caller bingo,
thereby creating a state-mandated local program.
Existing law requires the California Gambling Control Commission
to submit a report to the Legislature, on or before January 1, 2012,
on the fundraising effectiveness and regulation of remote caller
bingo. A loan from the Gambling Control Fund to the California Bingo
Fund for the startup costs relating to remote caller bingo is
required to be repaid within 5 years after the date of the loan.
This bill would delete that reporting requirement, and would
delete the requirement that the startup loan be repaid within 5
years.
Existing law authorizes players who are physically present at a
bingo game to use hand-held, portable card-minding devices, as
specified, that are approved prior to use by the California Gambling
Control Commission. Additionally, the commission is required to
license persons or entities that manufacture, supply, or service
card-minding devices and related equipment, and may inspect and
prohibit the use of any card-minding devices that are noncompliant.
Existing law requires the commission to adopt regulations concerning
remote caller bingo and card-minding devices.
This bill would repeal these provisions relating to card-minding
devices and the duties of the commission.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
This bill would declare that it is to take effect immediately as
an urgency statute.
(1) Under existing law, the Public Utilities Commission has
regulatory jurisdiction over public utilities, including electrical
corporations, as defined. Existing law authorizes the commission to
fix the rates and charges for every public utility, and requires that
those rates and charges be just and reasonable. Under existing law,
the local government renewable energy self-generation program
authorizes a local government, as defined, to receive a bill credit,
as defined, to be applied to a designated benefiting account for
electricity exported to the electrical grid by an eligible renewable
generating facility, as defined, and requires the commission to adopt
a rate tariff for the benefiting account.
This bill would repeal these provisions and enact the
Community-Based Renewable Energy Self-Generation Program. The program
would authorize a retail customer of an electric utility to purchase
a subscription, as defined, in a community facility, as defined, for
the purpose of receiving a bill credit, as defined, to offset all or
a portion of the customer's electricity usage, consistent with
specified requirements.
Because the provisions of the bill require action by the
commission to implement its requirements, a violation of these
provisions would impose a state-mandated local program by expanding
the definition of a crime.
The bill would provide that any corporation or person engaged
directly or indirectly in developing, producing, delivering,
participating in, or selling interests in, a community facility is
not a public utility or electrical corporation solely by reason of
engaging in any of those activities.
(2) Existing law authorizes the City of Davis to receive a bill
credit, as defined, to a benefiting account, as defined, for
electricity supplied to the electrical grid by a photovoltaic
electricity generation facility located within, and partially owned
by, the city (PVUSA solar facility) and requires the commission to
adopt a rate tariff for the benefiting account.
This bill would repeal these provisions relating to the City of
Davis.
(3) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: yes. State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19850.5 of the
Business and Professions Code is repealed.
19850.5. Notwithstanding Section 19850 or any other provision of
law, this chapter shall apply to both of the following:
(a) The operation, regulation, and enforcement of remote caller
bingo, as defined in paragraph (1) of subdivision (t) of Section
326.3 of the Penal Code, to the extent expressly made applicable by
Section 326.3 of the Penal Code. No requirement contained in this
chapter shall apply to remote caller bingo unless expressly made
applicable by Section 326.3 of the Penal Code.
(b) The regulation of card-minding devices as provided in
subdivision (p) of Section 326.5 of the Penal Code, to the extent
expressly made applicable by Section 326.5 of the Penal Code. No
requirement contained in this chapter shall apply to card-minding
devices unless expressly made applicable by Section 326.5 of the
Penal Code.
SEC. 2. Section 19850.6 of the Business
and Professions Code is repealed.
19850.6. (a) In order to avoid delays in implementing the
California Remote Caller Bingo Act, including implementing remote
caller bingo, testing and certifying card-minding devices, and to
avoid disruption of fundraising efforts by nonprofit organizations,
the Legislature finds and declares that it is necessary to provide
the commission with a limited exemption from normal rulemaking
procedural requirements. The commission is directed to adopt
appropriate emergency regulations as soon as possible, the initial
regulatory action to be filed with the Office of Administrative Law
no later than May 1, 2009. It is the intent of the Legislature to
provide the commission with full authority and sufficient flexibility
to adopt all needed regulations. These regulations may be adopted in
a series of regulatory actions. Subsequent regulatory actions may
amend or repeal earlier regulatory actions, as necessary, to reflect
program experience and concerns of the regulated public.
(b) The commission shall adopt emergency regulations concerning
remote caller bingo and concerning card-minding devices no later than
May 1, 2009. The adoption, amendment, repeal, or readoption of a
regulation authorized by this section is deemed to address an
emergency, for purposes of Sections 11346.1 and 11349.6 of the
Government Code, and the commission is hereby exempted for this
purpose from the requirements of subdivision (b) of Section 11346.1
of the Government Code, but shall otherwise be subject to the review
and approval of the Office of Administrative Law.
(c) Notwithstanding any other law, all emergency regulations
adopted by the commission pursuant to this section before July 1,
2009, shall remain in effect until December 31, 2011, except to the
extent that the commission exercises its power to adopt, amend, or
repeal these regulations in whole or in part.
SEC. 3. Section 326.3 of the Penal Code
is amended to read:
326.3. (a) The Legislature finds and declares all of the
following:
(1) Nonprofit organizations provide important and essential
educational, philanthropic, and social services to the people of the
State of California.
(2) One of the great strengths of California is a vibrant
nonprofit sector.
(3) Nonprofit and philanthropic organizations touch the lives of
every Californian through service and employment.
(4) Many of these services would not be available if nonprofit
organizations did not provide them.
(5) There is a need to provide methods of fundraising to nonprofit
organizations to enable them to provide these essential services.
(6) Historically, many nonprofit organizations have used
charitable bingo as one of their key fundraising strategies to
promote the mission of the charity.
(7) Legislation is needed to provide greater revenues for
nonprofit organizations to enable them to fulfill their charitable
purposes, and especially to meet their increasing social service
obligations.
(8) Legislation is also needed to clarify that existing law
requires that all charitable bingo must be played using a tangible
card and that the only permissible electronic devices to be used by
charitable bingo players are card-minding devices.
(b) Neither the prohibition on gambling in this chapter nor in
Chapter 10 (commencing with Section 330) applies to any remote caller
bingo game that is played or conducted in a city, county, or city
and county pursuant to an ordinance enacted under Section 19 of
Article IV of the California Constitution, if the ordinance allows a
remote caller bingo game to be played or conducted only in accordance
with this section, including the following requirements:
(1) The game may be conducted only by the following organizations:
(A) An organization that is exempted from the payment of the taxes
imposed under the Corporation Tax Law by Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code.
(B) A mobilehome park association.
(C) A senior citizens organization.
(D) Charitable organizations affiliated with a school district
or community college district .
(2) The organization conducting the game shall have been
incorporated or in existence for three years or more.
(3) The organization conducting the game shall be licensed
pursuant to subdivision (l) of Section 326.5.
(4) The receipts of the game shall be used only for charitable
purposes. The organization conducting the game shall determine the
disbursement of the net receipts of the game.
(5) The operation of bingo may not be the primary purpose for
which the organization is organized.
(c) (1) A city, county, or city and county may adopt an ordinance
in substantially the following form to authorize remote caller bingo
in accordance with the requirements of subdivision (b):
Sec. _.01. Legislative Authorization.
This chapter is adopted pursuant to Section 19 of Article IV of
the California Constitution, as implemented by Sections 326.3 and
326.4 of the Penal Code.
Sec. _.02. Remote Caller Bingo Authorized.
Remote Caller Bingo may be lawfully played in the City, County, or
City and County] pursuant to the provisions of Sections 326.3 and
326.4 of the Penal Code, and this chapter, and not otherwise.
Sec. _.03. Qualified Applicants: Applicants for Licensure.
(a) The following organizations are qualified to apply to the
License Official for a license to operate a bingo game if the
receipts of those games are used only for charitable purposes:
(1) An organization exempt from the payment of the taxes imposed
under the Corporation Tax Law by Section 23701a, 23701b, 23701d,
23701e, 23701f, 23701g, 23701k, 23701 l , or
23701w of the Revenue and Taxation Code.
(2) A mobile home park association of a mobile home park that is
situated in the City, County, or City and County].
(3) Senior citizen organizations.
(4) Charitable organizations affiliated with a school district.
(b) The application shall be in a form prescribed by the License
Official and shall be accompanied by a nonrefundable filing fee in an
amount determined by resolution of the Governing Body of the City,
County, or City and County] from time to time. The following
documentation shall be attached to the application, as applicable:
(1) A certificate issued by the Franchise Tax Board certifying
that the applicant is exempt from the payment of the taxes imposed
under the Corporation Tax Law pursuant to Section 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701 l ,
or 23701w of the Revenue and Taxation Code. In lieu of a certificate
issued by the Franchise Tax Board, the License Official may refer to
the Franchise Tax Board's Internet Web site to verify that the
applicant is exempt from the payment of the taxes imposed under the
Corporation Tax Law.
(2) Other evidence as the License Official determines is necessary
to verify that the applicant is a duly organized mobile home park
association of a mobile home park situated in the City, County, or
City and County].
Sec. _.04. License Application: Verification.
The license shall not be issued until the License Official has
verified the facts stated in the application and determined that the
applicant is qualified.
Sec. _.05. Annual Licenses.
A license issued pursuant to this chapter shall be valid until the
end of the calendar year, at which time the license shall expire. A
new license shall only be obtained upon filing a new application and
payment of the license fee. The fact that a license has been issued
to an applicant creates no vested right on the part of the licensee
to continue to offer bingo for play. The Governing Body of the City,
County, or City and County] expressly reserves the right to amend or
repeal this chapter at any time by resolution. If this chapter is
repealed, all licenses issued pursuant to this chapter shall cease to
be effective for any purpose on the effective date of the repealing
resolution.
Sec. _.06. Conditions of Licensure.
(a) Any license issued pursuant to this chapter shall be subject
to the conditions contained in Sections 326.3 and 326.4 of the Penal
Code, and each licensee shall comply with the requirements of those
provisions.
(b) Each license issued pursuant to this chapter shall be subject
to the following additional conditions:
(1) Bingo games shall not be conducted by any licensee on more
than two days during any week, except that a licensee may hold one
additional game, at its election, in each calendar quarter.
(2) The licensed organization is responsible for ensuring that the
conditions of this chapter and Sections 326.3 and 326.4 of the Penal
Code are complied with by the organization and its officers and
members. A violation of any one or more of those conditions or
provisions shall constitute cause for the revocation of the
organization's license. At the request of the organization, the
Governing Body of the City, County, or City and County] shall hold a
public hearing before revoking any license issued pursuant to this
chapter.
(2) Nothing in this section shall require a city, county, or city
and county to use this model ordinance in order to authorize remote
caller bingo.
(c) (1) To ensure continuity of remote caller bingo games, until
June 1, 2012, the local licensing entity may recognize a state
license, work permit, or approval of equipment that was issued by the
commission pursuant to this section, and in effect on June 30, 2011,
including, but not limited to, any of the following:
(A) An interim license of a person who conducts remote caller
bingo games approved by the commission, as of June 30, 2011.
(B) An interim work permit for personnel employed by an
organization that conducts remote caller bingo games.
(C) An interim approval of equipment used for remote caller bingo
games.
(2) If the local licensing entity decides to recognize a license,
work permit, or equipment approval issued by the commission, the
local licensing entity shall be responsible for regulatory oversight
and enforcement in accordance with the standards and procedures
applicable within its jurisdiction pursuant to local ordinance.
(3) Any reference to the commission as the licensing authority for
the conduct of remote caller bingo games that appears in a local
ordinance adopted prior to the operative date of the act adding this
subdivision shall be deemed to refer to the local licensing entity.
(d) (1) It is a misdemeanor for any person
to receive or pay a profit, wage, or salary from any remote caller
bingo game, provided that administrative, managerial, technical,
financial, and security personnel employed by the organization
conducting the bingo game may be paid reasonable fees for services
rendered from the revenues of bingo games, as provided in subdivision
(m), except that fees paid under those agreements shall not be
determined as a percentage of receipts or other revenues from, or be
dependant dependent on the outcome of,
the game.
(e)
(2) A violation of this subdivision
(d) shall be punishable by a fine not to exceed ten
thousand dollars ($10,000), which fine shall be deposited in the
general fund of the city, county, or city and county that enacted the
ordinance authorizing the remote caller bingo game. A violation of
any provision of this section, other than this subdivision
(d) , is a misdemeanor.
(f)
(e) The city, county, or city and county that enacted
the ordinance authorizing the remote caller bingo game, or the
Attorney General, may bring an action to enjoin a violation of this
section.
(g)
(f) No minors shall be allowed to participate in any
remote caller bingo game.
(h)
(g) A remote caller bingo game shall not include any
site that is not located within this state.
(i)
(h) An organization authorized to conduct a remote
caller bingo game pursuant to subdivision (b) shall conduct the game
only on property that is owned or leased by the organization, or the
use of which is donated to the organization. Nothing in this
subdivision shall be construed to require that the property that is
owned or leased by, or the use of which is donated to, the
organization be used or leased exclusively by, or donated exclusively
to, that organization.
(j)
(i) (1) All remote caller bingo games shall be open to
the public, not just to the members of the authorized organization.
(2) No more than 750 players may participate in a remote caller
bingo game in a single location.
(3) If the Governor of California or the President of the United
States declares a state of emergency in response to a natural
disaster or other public catastrophe occurring in California, an
organization authorized to conduct remote caller bingo games may,
while that declaration is in effect, conduct a remote caller bingo
game pursuant to this section with more than 750 participants in a
single venue if the net proceeds of the game, after deduction of
prizes and overhead expenses, are donated to or expended exclusively
for the relief of the victims of the disaster or catastrophe, and the
organization gives the California Gambling Control
Commission local licensing entity at least 10
days' written notice of the intent to conduct that game.
(4) An organization authorized to conduct remote caller bingo
games shall provide the commission local
licensing entity with at least 30 10
days' advance written notice of its intent to conduct a remote
caller bingo game. That notice shall include all of the
following: be on a form prescribed by the local
licensing entity. If the location of the remote caller bingo game
changes, the organization shall provide the local licensing entity
notice by e-mail, telephone, or fax within 24 hours of the change of
location.
(A) The legal name of the organization and the address of record
of the agent upon whom legal notice may be served.
(B) The locations of the caller and remote players, whether the
property is owned by the organization or donated, and if donated, by
whom.
(C) The name of the licensed caller and site manager.
(D) The names of administrative, managerial, technical, financial,
and security personnel employed.
(E) The name of the vendor and any person or entity maintaining
the equipment used to operate and transmit the game.
(F) The name of the person designated as having a fiduciary
responsibility for the game pursuant to paragraph (2) of subdivision
(k).
(G) The license numbers of all persons specified in subparagraphs
(A) to (F), inclusive, who are required to be licensed.
(H) A copy of the local ordinance for any city, county, or city
and county in which the game will be played. The commission shall
post the ordinance on its Internet Web site.
(j) (1) An organization eligible to conduct a remote caller bingo
game pursuant to subdivision (b) shall register annually with the
department in order to conduct remote caller bingo games pursuant to
this section. The department shall create, by regulation, and provide
to eligible nonprofit organizations, upon request, a registration
form. The department also shall post the registration form on its
Internet Web site. Only the information necessary for the department
to implement this section shall be required for completion of the
registration form, including, but not limited to, all of the
following relative to the eligible organization:
(A) Name and address of the organization, and a mode of contract,
such as a telephone number, for the organization that members of the
public and government agencies may use during normal business hours
to obtain information about the organization's finances and
activities. The telephone number of an official of the organization
who can provide that information may be used.
(B) Federal tax identification number, corporate number issued by
the Secretary of State, organization number issued by the Franchise
Tax Board, or California charitable trust identification number.
(C) Name and title of a responsible fiduciary of the organization.
(2) The department shall maintain a registry on its Internet Web
site of all organizations registered to conduct remote caller bingo
pursuant to this section. Prior to issuing a license pursuant to a
local ordinance, the local licensing entity shall confirm that an
organization applying to operate a remote caller bingo game is
registered and in good standing according to the registry available
on the department's Internet Web site.
(3) The department may require an eligible organization to pay an
annual registration fee of one hundred dollars ($100) to cover the
actual costs of the department to administer and enforce this
section. The department may, by regulation, adjust the annual
registration fee as needed to ensure that revenues will fully offset,
but not exceed, the actual costs incurred by the department pursuant
to this section. Fee revenues shall be deposited by the department
into the California Bingo Fund.
(4) The department shall adopt regulations to implement this
section. The initial adoption, amendment, or repeal of a regulation
authorized by this section is deemed to address an emergency, for
purposes of Sections 11346.1 and 11349.6 of the Government Code, and
the department is hereby exempted for that purpose from the
requirements of subdivision (b) of Section 11346.1 of the Government
Code. After the initial adoption, amendment, or repeal of an
emergency regulation pursuant to this section, the department may
request approval from the Office of Administrative Law to readopt the
regulation as an emergency regulation pursuant to Section 11346.1 of
the Government Code.
(5) The department shall have concurrent jurisdiction with local
law enforcement agencies to enforce this section.
(k) (1) A remote caller bingo game shall be operated and staffed
only by members of the authorized organization that organized it.
Those members shall not receive a profit, wage, or salary from any
remote caller bingo game. Only the organization authorized to conduct
a remote caller bingo game shall operate that game, or participate
in the promotion, supervision, or any other phase of a remote caller
bingo game. Subject to the provisions of
subdivision (m), this subdivision shall not preclude the employment
of administrative, managerial, technical, financial, or security
personnel who are not members of the authorized organization at a
location participating in the remote caller bingo game by the
organization conducting the game. Notwithstanding any other
provision of law, exclusive or other agreements between the
authorized organization and other entities or persons to provide
services in the administration, management, or conduct of the game
shall not be considered a violation of the prohibition against
holding a legally cognizable financial interest in the conduct of the
remote caller bingo game by persons or entities other than the
charitable organization, or other entity authorized to conduct the
remote caller bingo games , provided that those persons or
entities obtain the gambling licenses, the key employee licenses, or
the work permits required by, and otherwise comply with, Chapter 5
(commencing with Section 19800) of Division 8 of the Business and
Professions Code . Fees to be paid under any such
those agreements shall be reasonable and shall
not be determined as a percentage of receipts or other revenues from,
or be dependent on the outcome of, the game.
(2) An authorized organization may contract with a management
company to provide business services, including, but not limited to,
game accounting and bingo game consulting, including operations of
broadcasting and telecasting assistance. An authorized organization
that contracts with a management company shall do all of the
following:
(A) Indicate on the application to conduct remote caller bingo
games that is submitted to the local licensing entity that it has
contracted with a management company. The authorized organization
shall notify the local licensing entity in writing if it contracts
with a management company subsequent to the submission of its
application to the local licensing entity.
(B) Ensure that the management company has a business license and
request a live scan background check for each employee or consultant
that has a 10 percent or greater ownership interest in any management
company.
(C) Maintain on file the name, address, and contact numbers of the
management company, and provide that information to the department
upon request.
(3) A management company that is retained by an authorized
organization to manage a remote caller bingo game shall file all of
the following with the department:
(A) The legal name of the management company and the address of
record of the agent upon whom legal notice may be served.
(B) The physical locations of the caller and each of the remote
sites at which remote caller bingo is played.
(C) The names of any site managers employed by the management
company.
(D) A copy of the local ordinance for each remote site at which
remote caller bingo is played.
(4) The live, physical calling and broadcast of a remote caller
bingo game shall be conducted from a jurisdiction that authorizes by
local ordinance the conduct of remote caller bingo games.
(5) Any person who knowingly violates paragraph (3) by providing
false information shall be subject to a civil penalty in the amount
of five thousand dollars ($5,000). An action for a civil penalty may
be brought by any public prosecutor.
(2)
(6) An organization that conducts a remote caller bingo
game shall designate a person as having fiduciary responsibility for
the game.
(l) No individual, corporation, partnership, or other legal
entity, except the organization authorized to conduct or participate
in a remote caller bingo game, shall hold a legally cognizable
financial interest in the conduct of such a
that game.
(m) An organization authorized to conduct a remote caller bingo
game pursuant to this section shall not have overhead costs exceeding
20 percent of gross sales, except that the limitations of this
section shall not apply to one-time, nonrecurring capital
acquisitions. For purposes of this subdivision, "overhead costs"
includes, but is not limited to, amounts paid for rent and equipment
leasing and the reasonable fees authorized to be paid to
administrative, managerial, technical, financial, and security
personnel employed by the organization pursuant to subdivision (d).
For the purpose of keeping its overhead costs below 20 percent of
gross sales, an authorized organization may elect to deduct all or a
portion of the fees paid to financial institutions for the use and
processing of credit card sales from the amount of gross revenues
awarded for prizes. In that case, the redirected fees for the use and
processing of credit card sales shall not be included in "overhead
costs" as defined in the California Remote Caller Bingo Act.
Additionally, fees paid to financial institutions for the use and
processing of credit card sales shall not be deducted from the
proceeds retained by the charitable
organization.
(n) No person shall be allowed to participate in a remote caller
bingo game unless the person is physically present at the time and
place where the remote caller bingo game is being conducted. A person
shall be deemed to be physically present at the place where the
remote caller bingo game is being conducted if he or she is present
at any of the locations participating in the remote caller bingo game
in accordance with this section.
(o) (1) An organization shall not cosponsor a remote caller bingo
game with one or more other organizations unless one of the
following is true:
(A) All
all of the cosponsors are affiliated under the master
charter or articles and bylaws of a single organization involved
in the same type of activity .
(B) All of the cosponsors are affiliated through an organization
described in paragraph (1) of subdivision (b), and have the same
Internal Revenue Service activity code.
(2) Notwithstanding paragraph (1), a maximum of 10 unaffiliated
organizations described in paragraph (1) of subdivision (b) may enter
into an agreement to cosponsor a remote caller game,
provided but that the game
shall have not more than 10 locations.
(3) An organization shall not conduct remote caller bingo more
than two days per week , except that an organization may hold
one additional game, at its election, in each calendar quarter
.
(4) Before sponsoring or operating any game authorized under
paragraph (1) or (2), each of the cosponsoring organizations shall
have entered into a written agreement, a copy of which shall be
provided to the commission, setting forth how the expenses and
proceeds of the game are to be allocated among the participating
organizations, the bank accounts into which all receipts are to be
deposited and from which all prizes are to be paid, and how game
records are to be maintained and subjected to annual audit.
(p) The value of prizes awarded during the conduct of any remote
caller bingo game shall not exceed 37 percent of the gross receipts
for that game. When an authorized organization elects to deduct fees
paid for the use and processing of credit card sales from the amount
of gross revenues for that game awarded for prizes, the maximum
amount of gross revenues that may be awarded for prizes shall not
exceed 37 percent of the gross receipts for that game, less the
amount of redirected fees paid for the use and processing of credit
card sales. Every remote caller bingo game shall be played until a
winner is declared. Progressive prizes are prohibited. The declared
winner of a remote caller bingo game shall provide his or her
identifying information and a mailing address to the onsite
manager of the remote caller bingo game a
representative of the organization . Prizes shall be paid only
by check; no cash prizes shall be paid. The organization conducting
the remote caller bingo game may issue a check to the winner at the
time of the game, or may send a check to the declared winner by
United States Postal Service certified mail, return receipt
requested . All prize money exceeding state and federal
exemption limits on prize money shall be subject to income tax
reporting and withholding requirements under applicable state and
federal laws and regulations and those reports and withholding shall
be forwarded, within 10 business days, to the appropriate state or
federal agency on behalf of the winner. A report shall accompany the
amount withheld identifying the person on whose behalf the money is
being sent. Any game interrupted by a transmission failure,
electrical outage, or act of God shall be considered void in the
location that was affected. A refund for a canceled game or games
shall be provided to the purchasers.
(q) (1) The California Gambling Control Commission shall regulate
remote caller bingo, including, but not limited to, licensure and
operation. The commission shall establish reasonable criteria
regulating, and shall require the licensure of, the following:
(A) Any person who conducts a remote caller bingo game pursuant to
this section, including, but not limited to, an employee, a person
having fiduciary responsibility for a remote caller bingo game, a
site manager, and a bingo caller.
(B) Any person who directly or indirectly manufactures,
distributes, supplies, vends, leases, or otherwise provides supplies,
devices, services, or other equipment designed for use in the
playing of a remote caller bingo game by any nonprofit organization.
(C) Beginning January 31, 2009, or a later date as may be
established by the commission, all persons described in subparagraph
(A) or (B) may submit to the commission a letter of intent to submit
an application for licensure. The letter shall clearly identify the
principal applicant, all categories under which the application will
be filed, and the names of all those particular individuals who are
applying. Each charitable organization shall provide an estimate of
the frequency with which it plans to conduct remote caller bingo
operations, including the number of locations. The letter of intent
may be withdrawn or updated at any time.
(2) (A) The Department of Justice shall conduct background
investigations and conduct field enforcement as it relates to remote
caller bingo consistent with the Gambling Control Act (Chapter 5
(commencing with Section 19800) of Division 8 of the Business and
Professions Code) and as specified in regulations promulgated by the
commission.
(B) Fees to cover background investigation costs shall be paid and
accounted for in accordance with Section 19867 of the Business and
Professions Code.
(3) (A) Every application for a license or approval shall be
accompanied by a nonrefundable fee, the amount of which shall be
adopted by the commission by regulation.
(q) (1) A licensed organization, or a management company
contracted with a licensed organization, shall register all of its
local bingo licenses with the department. This information shall be
made available to the public upon request.
(2) The department may charge an annual filing fee of two hundred
dollars ($200) to be used to cover the actual costs to administer and
enforce the registration requirement described in paragraph (1). Fee
revenues shall be deposited by the department into the California
Bingo Fund.
(r) (1) If the local licensing entity requests a background check
from the department of any person required to be licensed pursuant to
the applicable local ordinance, it shall submit to the department
fingerprint images and related information required by the department
for the purpose of obtaining information as to the existence and
content of a record of state and federal convictions and arrests,
including state or federal arrests for which the department
establishes that the person is free on bail or on his or her own
recognizance pending trial or appeal.
(2) Upon receipt, the department shall forward requests for
federal summary criminal history information pursuant to this section
to the Federal Bureau of Investigation. The department shall review
the information returned from the Federal Bureau of Investigation and
compile and disseminate a response to the local licensing entity.
(3) The department shall provide a state or federal level response
to the local licensing entity pursuant to paragraph (1) of
subdivision (p) of Section 11105.
(4) The local licensing entity shall request from the department
subsequent arrest notification service, as provided pursuant to
Section 11105.2, for persons described in paragraph (1).
(5) The department shall charge a fee sufficient to cover the cost
of processing requests pursuant to this subdivision.
(B)
(6) (A) Fees and revenue
collected pursuant to this paragraph
subdivision shall be deposited in the California Bingo Fund,
which is hereby created in the State Treasury. The funds deposited in
the California Bingo Fund shall be available, upon appropriation by
the Legislature, for expenditure by the commission and
the department exclusively for the support of the
commission and department in carrying out their
its duties and responsibilities under this
section and Section 326.5 .
(C)
(B) A loan is hereby authorized from the Gambling
Control Fund to the California Bingo Fund on or after January 1,
2009, in an amount of up to five hundred thousand dollars ($500,000)
to fund operating, personnel, and other startup costs incurred by the
commission relating to this act. Funds from the California Bingo
Fund shall be available to the commission upon appropriation by the
Legislature in the annual Budget Act. The loan shall be subject to
all of the following conditions:
(i) The loan shall be repaid to the Gambling Control Fund as soon
as there is sufficient money in the California Bingo Fund to repay
the amount loaned , but no later than five years after the
date of the loan .
(ii) Interest on the loan shall be paid from the California Bingo
Fund at the rate accruing to moneys in the Pooled Money Investment
Account.
(iii) The terms and conditions of the loan are approved, prior to
the transfer of funds, by the Department of Finance pursuant to
appropriate fiscal standards.
The commission may assess and collect reasonable fees and deposits
as necessary to defray the costs of regulation and oversight.
(r) The administrative, managerial, technical, financial, and
security personnel employed by an organization that conducts remote
caller bingo games shall apply for, obtain, and thereafter maintain
valid work permits, as defined in Section 19805 of the Business and
Professions Code.
(s) An organization that conducts remote caller bingo games shall
retain records in connection with the remote caller bingo game for
five years.
(t) (1) All equipment used for remote caller bingo shall be
approved in advance by the California Gambling Control Commission
pursuant to regulations adopted pursuant to subdivision (r) of
Section 19841 of the Business and Professions Code.
(2)
(t) The California Gambling Control Commission
local licensing entity shall monitor operation
of the transmission and other equipment used for remote caller bingo,
and monitor the game.
(u) (1) As used in this section, "remote caller bingo game" means
a game of bingo, as defined in subdivision (o) of Section 326.5, in
which the numbers or symbols on randomly drawn plastic balls are
announced by a natural person present at the site at which the live
game is conducted, and the organization conducting the bingo game
uses audio and video technology to link any of its in-state
facilities for the purpose of transmitting the remote calling of a
live bingo game from a single location to multiple locations owned,
leased, or rented by that organization, or as described in
subdivision (o) of this section. The audio or video technology used
to link the facilities may include cable, Internet, satellite,
broadband, or telephone technology, or any other means of electronic
transmission that ensures the secure, accurate, and simultaneous
transmission of the announcement of numbers or symbols in the game
from the location at which the game is called by a natural person to
the remote location or locations at which players may participate in
the game. The drawing of each ball bearing a number or symbol by the
natural person calling the game shall be visible to all players as
the ball is drawn, including through a simultaneous live video feed
at remote locations at which players may participate in the game.
(2) The caller in the live game must be licensed by the California
Gambling Control Commission. A game may be called by a nonlicensed
caller if the drawing of balls and calling of numbers or symbols by
that person is observed and personally supervised by a licensed
caller.
(3)
(2) Remote caller bingo games shall 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, as described in paragraph (1) of subdivision (p) of Section
326.5.
(4) Prior to conducting a remote caller bingo game, the
organization that conducts remote caller bingo shall submit to the
commission the controls, methodology, and standards of game play,
which shall include, but not be limited to, the equipment used to
select bingo numbers and create or originate cards, control or
maintenance, distribution to participating locations, and
distribution to players. Those controls, methodologies, and standards
shall be subject to prior approval by the commission, provided that
the controls shall be deemed approved by the commission after 90 days
from the date of submission unless disapproved.
(v) A location shall not be eligible to participate in a remote
caller bingo game if bingo games are conducted at that location in
violation of Section 326.5 or any regulation adopted by the
commission pursuant to Section 19841 of the Business and Professions
Code , including, but not limited to, a location at which
unlawful electronic devices are used.
(w) (1) The vendor of the equipment used in a remote caller bingo
game shall have its books and records audited at least annually by an
independent California certified public accountant and shall submit
the results of that audit to the California Gambling Control
Commission within 120 days after the close of the vendor's fiscal
year. In addition, the California Gambling Control Commission may
audit the books and records of the vendor at any time.
(2) An authorized organization that conducts remote caller bingo
games shall provide copies of the records pertaining to those games
to the California Gambling Control Commission within 30 days after
the end of each calendar quarter. In addition, those records shall be
audited by an independent California certified public accountant at
least annually and copies of the audit reports shall be provided to
the California Gambling Control Commission within 120 days after the
close of the organization's fiscal year. The audit report shall
account for the annual amount of fees paid to financial institutions
for the use and processing of credit card sales by the authorized
organization and the amount of fees for the use and processing of
credit card sales redirected from "overhead costs" and deducted from
the amount of gross revenues awarded for prizes.
(3) The costs of the licensing and audits required by this section
shall be borne by the person or entity required to be licensed or
audited. The audit shall enumerate the receipts for remote caller
bingo, the prizes disbursed, the overhead costs, and the amount
retained by the nonprofit organization. The commission may audit the
books and records of an organization that conducts remote caller
bingo games at any time.
(4) If, during an audit, the commission identifies practices in
violation of this section, the license for the audited entity may be
suspended pending review and hearing before the commission for a
final determination.
(5) No audit required to be conducted by the commission shall
commence before January 1, 2010.
(w) (1) The department may audit the books and records of a
licensed organization or a management company contracted by a
licensed organization to conduct remote caller bingo at any time and
may charge a fee for the audit sufficient to cover the costs of
performing the audit. An audit shall be contingent upon the
Legislature appropriating funds for this purpose. Any information
collected in the course of an audit shall be made available to the
public upon request.
(2) A management company contracted with a licensed organization
shall retain an independent California certified public accountant to
conduct an annual audit of its books and records. The results of the
audit shall be submitted to the department within 120 days after the
close of the management company's fiscal year.
(x) (1) The provisions of this section are severable. If any
provision of this section or its application is held invalid, that
invalidity shall not affect other provisions or applications that can
be given effect without the invalid provision or application.
(2) Notwithstanding paragraph (1), if paragraph (1) or
(3) (2) of subdivision (u), or the application
of either of those provisions, is held invalid, this entire section
shall be invalid.
(y) The commission shall submit a report to the Legislature, on or
before January 1, 2012, on the fundraising effectiveness and
regulation of remote caller bingo, and other matters that are
relevant to the public interest regarding remote caller bingo.
(z)
(y) The following definitions apply for purposes of
this section:
(1) "Commission" means the California Gambling Control Commission.
(2) "Department" means the Department of Justice.
(3) "Local licensing entity" means the city, county, or city and
county.
(4) "Management company" means any person or business organization
retained by the licensed organization to install equipment necessary
to the electronic transmission of remote caller bingo to locations
in addition to the site where the game is being called. "Management
company" also means any person or business organization retained by
the licensed organization to operate the electronic transmission of
the remote caller bingo game to any or all remote sites in addition
to the site from which the game is being called.
(5) "Organization" means the principal organization that the
cosponsors are affiliated with. All cosponsors shall be considered
part of the organization with one person serving as the fiduciary for
the organization and all affiliated cosponsors.
(2)
(6) "Person" includes a natural person, corporation,
limited liability company, partnership, trust, joint venture,
association, or any other business organization.
SEC. 4. Section 326.5 of the Penal Code
is amended to read:
326.5. (a) Neither the prohibition on gambling in this chapter
nor in Chapter 10 (commencing with Section 330) applies to any bingo
game that is conducted in a city, county, or city and county pursuant
to an ordinance enacted under Section 19 of Article IV of the
State California Constitution, if the
ordinance allows games to be conducted only in accordance with this
section , and only by organizations exempted from the
payment of the bank and corporation tax by Sections 23701a, 23701b,
23701d, 23701e, 23701f, 23701g, 23701k, 23701w, and
23701 l , and 23701w of the Revenue
and Taxation Code , and by mobilehome park associations,
senior citizens organizations, and charitable organizations
affiliated with a school district; and if the receipts of those games
are used only for charitable purposes. The ordinance may be
amended by resolution of the governing body of the city, county, or
city and county to allow a remote caller bingo game to be played or
conducted in accordance with the requirements of Section 326.3.
(b) It is a misdemeanor for any person to receive or pay a profit,
wage, or salary from any bingo game authorized by Section 19 of
Article IV of the State California
Constitution. Security personnel employed by the organization
conducting the bingo game may be paid from the revenues of bingo
games, as provided in subdivisions (j) and (k).
(c) A violation of subdivision (b) shall be punishable by a fine
not to exceed ten thousand dollars ($10,000), which fine is deposited
in the general fund of the city, county, or city and county that
enacted the ordinance authorizing the bingo game. A violation of any
provision of this section, other than subdivision (b), is a
misdemeanor.
(d) The city, county, or city and county that enacted the
ordinance authorizing the bingo game may bring an action to enjoin a
violation of this section.
(e) No minors shall be allowed to participate in any bingo game.
(f) An organization authorized to conduct bingo games pursuant to
subdivision (a) shall conduct a bingo game only on property owned or
leased by it, or property whose use is donated to the organization,
and which property is used by that organization for an office or for
performance of the purposes for which the organization is organized.
Nothing in this subdivision shall be construed to require that the
property owned or leased by, or whose use is donated to, the
organization be used or leased exclusively by, or donated exclusively
to, that organization.
(g) All bingo games shall be open to the public, not just to the
members of the authorized organization.
(h) A bingo game shall be operated and staffed only by members of
the authorized organization that organized it. Those members shall
not receive a profit, wage, or salary from any bingo game. Only the
organization authorized to conduct a bingo game shall operate such a
game, or participate in the promotion, supervision, or any other
phase of a bingo game. This subdivision does not preclude the
employment of security personnel who are not members of the
authorized organization at a bingo game by the organization
conducting the game.
(i) No individual, corporation, partnership, or other legal
entity, except the organization authorized to conduct a bingo game,
shall hold a financial interest in the conduct of a bingo game.
(j) With respect to organizations exempt from payment of the bank
and corporation tax by Section 23701d of the Revenue and Taxation
Code, all profits derived from a bingo game shall be kept in a
special fund or account and shall not be commingled with any other
fund or account. Those profits shall be used only for charitable
purposes.
(k) With respect to other organizations authorized to conduct
bingo games pursuant to this section, all proceeds derived from a
bingo game shall be kept in a special fund or account and shall not
be commingled with any other fund or account. Proceeds are the
receipts of bingo games conducted by organizations not within
subdivision (j). Those proceeds shall be used only for charitable
purposes, except as follows:
(1) The proceeds may be used for prizes.
(2) (A) Except as provided in subparagraph (B), a portion of the
proceeds, not to exceed 20 percent of the proceeds before the
deduction for prizes, or two thousand dollars ($2,000) per month,
whichever is less, may be used for the rental of property and for
overhead, including the purchase of bingo equipment, administrative
expenses, security equipment, and security personnel.
(B) For the purposes of bingo games conducted by the Lake Elsinore
Elks Lodge, a portion of the proceeds, not to exceed 20 percent of
the proceeds before the deduction for prizes, or three thousand
dollars ($3,000) per month, whichever is less, may be used for the
rental of property and for overhead, including the purchase of bingo
equipment, administrative expenses, security equipment, and security
personnel. Any amount of the proceeds that is additional to that
permitted under subparagraph (A), up to one thousand dollars
($1,000), shall be used for the purpose of financing the rebuilding
of the facility and the replacement of equipment that was destroyed
by fire in 2007. The exception to subparagraph (A) that is provided
by this subparagraph shall remain in effect only until the cost of
rebuilding the facility is repaid, or January 1, 2019, whichever
occurs first.
(3) The proceeds may be used to pay license fees.
(4) A city, county, or city and county that enacts an ordinance
permitting bingo games may specify in the ordinance that if the
monthly gross receipts from bingo games of an organization within
this subdivision exceed five thousand dollars ($5,000), a minimum
percentage of the proceeds shall be used only for charitable purposes
not relating to the conducting of bingo games and that the balance
shall be used for prizes, rental of property, overhead,
administrative expenses, and payment of license fees. The amount of
proceeds used for rental of property, overhead, and administrative
expenses is subject to the limitations specified in paragraph (2).
(l) (1) A city, county, or city and county may impose a license
fee on each organization that it authorizes to conduct bingo games.
The fee, whether for the initial license or renewal, shall not exceed
fifty dollars ($50) annually, except as provided in paragraph (2).
If an application for a license is denied, one-half of any license
fee paid shall be refunded to the organization.
(2) In lieu of the license fee permitted under paragraph (1), a
city, county, or city and county may impose a license fee of fifty
dollars ($50) paid upon application. If an application for a license
is denied, one-half of the application fee shall be refunded to the
organization. An additional fee for law enforcement and public safety
costs incurred by the city, county, or city and county that are
directly related to bingo activities may be imposed and shall be
collected monthly by
the city, county, or city and county issuing the license; however,
the fee shall not exceed the actual costs incurred in providing the
service.
(m) No person shall be allowed to participate in a bingo game,
unless the person is physically present at the time and place where
the bingo game is being conducted.
(n) The total value of prizes available to be awarded during the
conduct of any bingo games shall not exceed five hundred dollars
($500) in cash or kind, or both, for each separate game which is
held.
(o) As used in this section, "bingo" means a game of chance in
which prizes are awarded on the basis of designated numbers or
symbols that are marked or covered by the player on a tangible card
in the player's possession and that conform to numbers or symbols,
selected at random and announced by a live caller. Notwithstanding
Section 330c, as used in this section, the game of bingo includes
tangible cards having numbers or symbols that are concealed and
preprinted in a manner providing for distribution of prizes.
Electronics or video displays shall not be used in connection with
the game of bingo, except in connection with the caller's drawing of
numbers or symbols and the public display of that drawing, and except
as provided in subdivision (p). The winning cards shall not be known
prior to the game by any person participating in the playing or
operation of the bingo game. All preprinted cards shall bear the
legend, "for sale or use only in a bingo game authorized under
California law and pursuant to local ordinance." Only a covered or
marked tangible card possessed by a player and presented to an
attendant may be used to claim a prize. It is the intention of the
Legislature that bingo as defined in this subdivision applies
exclusively to this section and shall not be applied in the
construction or enforcement of any other provision of law.
(p) (1) Players who are physically present at a bingo game may use
hand-held, portable card-minding devices, as described in this
subdivision, to assist in monitoring the numbers or symbols announced
by a live caller as those numbers or symbols are called in a live
game. Card-minding devices may not be used in connection with any
game where a bingo card may be sold or distributed after the start of
the ball draw for that game. A card-minding device shall do all of
the following:
(A) Be capable of storing in the memory of the device bingo faces
of tangible cards purchased by a player.
(B) Provide a means for bingo players to input manually each
individual number or symbol announced by a live caller.
(C) Compare the numbers or symbols entered by the player to the
bingo faces previously stored in the memory of the device.
(D) Identify winning bingo patterns that exist on the stored bingo
faces.
(2) A card-minding device shall perform no functions involving the
play of the game other than those described in paragraph (1).
Card-minding devices shall not do any of the following:
(A) Be capable of accepting or dispensing any coins, currency, or
other representative of value or on which value has been encoded.
(B) Be capable of monitoring any bingo card face other than the
faces of the tangible bingo card or cards purchased by the player for
that game.
(C) Display or represent the game result through any means,
including, but not limited to, video or mechanical reels or other
slot machine or casino game themes, other than highlighting the
winning numbers or symbols marked or covered on the tangible bingo
cards or giving an audio alert that the player's card has a
prize-winning pattern.
(D) Determine the outcome of any game or be physically or
electronically connected to any component that determines the outcome
of a game or to any other bingo equipment, including, but not
limited to, the ball call station, or to any other card-minding
device. No other player-operated or player-activated electronic or
electromechanical device or equipment is permitted to be used in
connection with a bingo game.
(3) (A) A card-minding device shall be approved in advance by the
commission as meeting the requirements of this section and any
additional requirements stated in regulations adopted by the
commission. Any proposed material change to the device, including any
change to the software used by the device, shall be submitted to the
commission and approved by the commission prior to implementation.
(B) In accordance with Chapter 5 (commencing with Section 19800)
of Division 8 of the Business and Professions Code, the commission
shall establish reasonable criteria for, and require the licensure
of, any person that directly or indirectly manufactures, distributes,
supplies, vends, leases, or otherwise provides card-minding devices
or other supplies, equipment, or services related to card-minding
devices designed for use in the playing of bingo games by any
nonprofit organization.
(C) A person or entity that supplies or services any card-minding
device shall meet all licensing requirements established by the
commission in regulations.
(4) The costs of any testing, certification, license, or
determination required by this subdivision shall be borne by the
person or entity seeking it.
(5) On and after January 1, 2010, the commission and the
Department of Justice may inspect all card-minding devices at any
time without notice, and may immediately prohibit the use of any
device that does not comply with the requirements of subdivision (r)
of Section 19841 of the Business and Professions Code. The Department
of Justice may at any time, without notice, impound any device the
use of which has been prohibited by the commission.
(6) The California Gambling Control Commission shall issue
regulations to implement the requirements of this subdivision and may
issue regulations regarding the means by which the operator of a
bingo game, as required by applicable law, may offer assistance to a
player with disabilities in order to enable that player to
participate in a bingo game, provided that the means of providing
that assistance shall not be through any electronic,
electromechanical, or other device or equipment that accepts the
insertion of any coin, currency, token, credit card, or other means
of transmitting value, and does not constitute or is not a part of a
system that constitutes a video lottery terminal, slot machine, or
device prohibited by Chapter 10 (commencing with Section 330).
(7) The following definitions apply for purposes of this
subdivision:
(A) "Commission" means the California Gambling Control Commission.
(B) "Person" includes a natural person, corporation, limited
liability company, partnership, trust, joint venture, association, or
any other business organization.
SEC. 5. No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.
SEC. 6. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
The California Gambling Control Commission's funding authority for
the remote caller bingo program, which is a loan from the Gambling
Control Fund, and limited-term positions expired on June 30, 2011.
Without that funding authority and those positions, the commission
cannot perform work related to the remote caller bingo program after
June 30, 2011. In order to provide continuity for charitable
organizations that are conducting remote caller bingo at the earliest
possible time, it is necessary that this act take effect
immediately.
SECTION 1. Section 216 of the Public Utilities
Code is amended to read:
216. (a) "Public utility" includes every common carrier, toll
bridge corporation, pipeline corporation, gas corporation, electrical
corporation, telephone corporation, telegraph corporation, water
corporation, sewer system corporation, and heat corporation, where
the service is performed for, or the commodity is delivered to, the
public or any portion thereof.
(b) Whenever any common carrier, toll bridge corporation, pipeline
corporation, gas corporation, electrical corporation, telephone
corporation, telegraph corporation, water corporation, sewer system
corporation, or heat corporation performs a service for, or delivers
a commodity to, the public or any portion thereof for which any
compensation or payment whatsoever is received, that common carrier,
toll bridge corporation, pipeline corporation, gas corporation,
electrical corporation, telephone corporation, telegraph corporation,
water corporation, sewer system corporation, or heat corporation, is
a public utility subject to the jurisdiction, control, and
regulation of the commission and the provisions of this part.
(c) When any person or corporation performs any service for, or
delivers any commodity to, any person, private corporation,
municipality, or other political subdivision of the state, that in
turn either directly or indirectly, mediately or immediately,
performs that service for, or delivers that commodity to, the public
or any portion thereof, that person or corporation is a public
utility subject to the jurisdiction, control, and regulation of the
commission and the provisions of this part.
(d) Ownership or operation of a facility that employs cogeneration
technology or produces power from other than a conventional power
source or the ownership or operation of a facility which employs
landfill gas technology does not make a corporation or person a
public utility within the meaning of this section solely because of
the ownership or operation of that facility.
(e) Any corporation or person engaged directly or indirectly in
developing, producing, transmitting, distributing, delivering, or
selling any form of heat derived from geothermal or solar resources
or from cogeneration technology to any privately owned or publicly
owned public utility, or to the public or any portion thereof, is not
a public utility within the meaning of this section solely by reason
of engaging in any of those activities.
(f) The ownership or operation of a facility that sells compressed
natural gas at retail to the public for use only as a motor vehicle
fuel, and the selling of compressed natural gas at retail from that
facility to the public for use only as a motor vehicle fuel, does not
make the corporation or person a public utility within the meaning
of this section solely because of that ownership, operation, or sale.
(g) Ownership or operation of a facility that is an exempt
wholesale generator, as defined in the Public Utility Holding Company
Act of 2005 (42 U.S.C. Sec. 16451(6)), does not make a corporation
or person a public utility within the meaning of this section, solely
due to the ownership or operation of that facility.
(h) The ownership, control, operation, or management of an
electric plant used for direct transactions or participation directly
or indirectly in direct transactions, as permitted by subdivision
(b) of Section 365, sales into a market established and operated by
the Independent System Operator or any other wholesale electricity
market, or the use or sale as permitted under subdivisions (b) to
(d), inclusive, of Section 218, shall not make a corporation or
person a public utility within the meaning of this section solely
because of that ownership, participation, or sale.
(i) A corporation or person engaged directly or indirectly in
developing, producing, delivering, participating in, or selling
interests in, a community facility pursuant to Chapter 7.5
(commencing with Section 2830) of Part 2, is not a public utility
within the meaning of this section solely by reason of engaging in
any of those activities.
SEC. 2. Section 218 of the Public Utilities
Code is amended to read:
218. (a) "Electrical corporation" includes every corporation or
person owning, controlling, operating, or managing any electric plant
for compensation within this state, except where electricity is
generated on or distributed by the producer through private property
solely for its own use or the use of its tenants and not for sale or
transmission to others.
(b) "Electrical corporation" does not include a corporation or
person employing cogeneration technology or producing power from
other than a conventional power source for the generation of
electricity solely for any one or more of the following purposes:
(1) Its own use or the use of its tenants.
(2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated or on real property immediately adjacent thereto, unless
there is an intervening public street constituting the boundary
between the real property on which the electricity is generated and
the immediately adjacent property and one or more of the following
applies:
(A) The real property on which the electricity is generated and
the immediately adjacent real property is not under common ownership
or control, or that common ownership or control was gained solely for
purposes of sale of the electricity so generated and not for other
business purposes.
(B) The useful thermal output of the facility generating the
electricity is not used on the immediately adjacent property for
petroleum production or refining.
(C) The electricity furnished to the immediately adjacent property
is not utilized by a subsidiary or affiliate of the corporation or
person generating the electricity.
(3) Sale or transmission to an electrical corporation or state or
local public agency, but not for sale or transmission to others,
unless the corporation or person is otherwise an electrical
corporation.
(c) "Electrical corporation" does not include a corporation or
person employing landfill gas technology for the generation of
electricity for any one or more of the following purposes:
(1) Its own use or the use of not more than two of its tenants
located on the real property on which the electricity is generated.
(2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated.
(3) Sale or transmission to an electrical corporation or state or
local public agency.
(d) "Electrical corporation" does not include a corporation or
person employing digester gas technology for the generation of
electricity for any one or more of the following purposes:
(1) Its own use or the use of not more than two of its tenants
located on the real property on which the electricity is generated.
(2) The use of or sale to not more than two other corporations or
persons solely for use on the real property on which the electricity
is generated.
(3) Sale or transmission to an electrical corporation or state or
local public agency, if the sale or transmission of the electricity
service to a retail customer is provided through the transmission
system of the existing local publicly owned electric utility or
electrical corporation of that retail customer.
(e) "Electrical corporation" does not include an independent solar
energy producer, as defined in Article 3 (commencing with Section
2868) of Chapter 9 of Part 2.
(f) The amendments made to this section at the 1987 portion of the
1987-88 Regular Session of the Legislature do not apply to any
corporation or person employing cogeneration technology or producing
power from other than a conventional power source for the generation
of electricity that physically produced electricity prior to January
1, 1989, and furnished that electricity to immediately adjacent real
property for use thereon prior to January 1, 1989.
(g) A corporation or person engaged directly or indirectly in
developing, producing, delivering, participating in, or selling
interests in, a community facility pursuant to Chapter 7.5
(commencing with Section 2830) of Part 2, is not an electrical
corporation within the meaning of this section solely by reason of
engaging in any of those activities.
SEC. 3. Section 2826.5 of the Public Utilities
Code is repealed.
SEC. 4. Chapter 7.5 (commencing with Section
2830) of Part 2 of Division 1 of the Public Utilities Code is
repealed.
SEC. 5. Chapter 7.5 (commencing with Section
2830) is added to Part 2 of Division 1 of the Public Utilities Code,
to read:
CHAPTER 7.5. COMMUNITY-BASED RENEWABLE ENERGY SELF-GENERATION
PROGRAM
2830. The Legislature finds and declares all of the following:
(a) Despite the fact that all California utility customers fund
current self-generation programs, residential and commercial renters,
small businesses, public entities, and low-and moderate-income
Californians usually do not have the ability to participate fully in
current self-generation programs. The purpose of this chapter is to
provide all Californians with the opportunity to self-generate clean,
renewable power through the Community-Based Renewable Energy
Self-Generation Program. It is in the public interest to promote
broader participation in renewable self-generation by California
residents, public agencies, and businesses by the development of
community renewable energy facilities in which participants are
entitled to generate and receive renewable power through an
over-the-fence transaction.
(b) It is the intent of the Legislature that public schools have
the authority to invest in renewable power as provided in this
chapter. Energy usage is one of the most significant cost pressures
facing public schools at a time when schools have been forced to cut
essential programs, increase classroom sizes, and send pink slips to
teachers throughout the state. Schools may use the savings for
restoring funds for salaries, student achievement, facility
maintenance, and other budgetary needs. The energy projects that will
go forward under this chapter would create new green construction
jobs, stimulate the economy, generate funding, and provide more clean
renewable power to customers.
(c) Community-based renewable power will contribute to the
achievement of the 33 percent renewables portfolio standard in a
cost-effective manner and will assist in meeting the state's zero net
energy buildings goals. This chapter provides job creation,
environmental protection, and school funding for those who choose to
make the investment in community-based renewable energy
self-generation facilities.
2831. As used in this chapter, the following terms have the
following meanings:
(a) "Benefiting account" means one or more accounts designated to
receive a bill credit pursuant to Section 2832.
(b) "Bill credit" means an amount of money credited to one or more
benefiting accounts based on the percentage share of the community
facility that is assigned to the account.
(c) "Community facility" means a renewable energy facility that
meets all of the following requirements:
(1) Has a generating capacity of no more than 20 megawatts.
(2) Is an eligible renewable energy resource, as defined in
Article 16 (commencing with Section 399.11) of Part 1.
(3) The electrical output of the facility is measured by a
production meter capable of recording production in real time.
(4) Sells subscriptions to the electrical output of the facility.
(5) Is located in California.
(d) "Electrical utility" means an electrical corporation, as
defined in Section 218.
(e) "Local government" means a city, county, city and county,
special district, school district, political subdivision, or other
local governmental entity.
(f) "Subscriber" means a retail customer of an electric utility
who owns a subscription and who has designated one or more benefiting
accounts to which the subscription shall be attributed, including a
local government, the California Community Colleges, the California
State University, and the University of California.
(g) "Subscriber organization" means any for-profit or nonprofit
organization or business, created and operating pursuant to law,
whose purpose is to beneficially own or operate a community facility
for the subscribers to the community facility.
(h) "Subscription" means an interest in a community facility.
2832. (a) (1) A retail customer of an electrical utility may
purchase a subscription in a community facility for the purpose of
receiving a bill credit to offset all or a portion of the customer's
electricity usage. The subscriber shall designate one or more
benefiting accounts to which the subscription shall be attributed.
(2) To be eligible to be designated as a benefiting account, the
account shall be for service to premises located within the
geographical boundaries of the service territory of the electrical
utility containing the community facility, or within the geographical
boundaries of a contiguous service territory, if the electrical
utility and the utility for that service territory have entered into
an agreement enabling the connection of the benefiting account to the
community facility.
(3) The benefiting account shall be metered on a time-of-use
tariff.
(b) (1) For community facilities that are interconnected at the
transmission level, the bill credit shall be calculated based upon
the time-of-use electricity generation component of the electricity
usage charge of the benefiting account, multiplied by the quantity of
electricity generated by the community facility that is assigned to
the benefiting account pursuant to this section.
(2) For community facilities that are interconnected at the
distribution level, the bill credit shall be calculated based upon
the time-of-use electricity generation and transmission component of
the electricity usage charge of the benefiting account, multiplied by
the quantity of electricity generated by the community facility that
is assigned to the benefiting account pursuant to this section.
(c) (1) Each subscription shall be sized to represent at least one
kilowatt of the community facility's generating capacity.
(2) A subscriber shall not purchase more than 2 megawatts of
capacity in any single community facility. This subdivision does not
apply to a local government.
(3) A subscriber organization may beneficially own or operate a
community facility for the subscribers to the community facility. A
community facility may be built, owned, or operated by a third party
under contract with a subscriber organization.
(4) Prior to a sale of a subscription, the subscriber organization
shall provide a disclosure to the customer that, at a minimum,
includes all of the following:
(A) A good faith estimate of the annual kilowatthours to be
delivered by the community facility based on the size of the
subscription.
(B) A plain language explanation of the terms under which the bill
credits will be calculated.
(C) A plain language explanation of the contract provisions
regulating the disposition or transfer of the subscription.
(5) The commission shall not regulate the prices paid for the
shares of a community facility.
(d) Local governments may aggregate their loads for the purpose of
participating in a community facility pursuant to this section.
(e) (1) A subscriber organization shall provide to the electrical
utility information on the identity of the
benefiting accounts that will receive a bill
credit pursuant to this section not less then 30 days prior to the
commencement of the operations of the community facility.
(2) For a local government that elects to aggregate its loads for
the purpose of purchasing a subscription, if the local government has
more than one benefiting account the owner or operator of the
facility shall designate the specific accounts and percentage
allocations to which the bill credit shall apply.
(3) A subscriber organization shall be responsible for all costs
of metering and shall retain production data for a period of 36
months. The subscriber organization shall provide real-time meter
data to the electrical utility and shall make the data available to
the subscribers upon request.
(f) (1) Not more frequently than once per month, and upon
providing the electrical utility with a minimum of 30 days, notice,
the subscriber organization may change, add, or remove a benefiting
account. If the owner of a benefiting account transfers service to a
new benefiting account, the electrical utility shall transfer any
credit remaining from the previous account to the new account.
(2) A subscriber organization shall be responsible for providing
the electrical utility, on a monthly basis, the percentage shares to
be used to determine the bill credit to each benefiting account.
(g) (1) An electrical utility shall bill a benefiting account for
all electricity usage, and for each bill component, at the rate
schedule applicable to the benefiting account, including any
cost-responsibility surcharge or other cost recovery mechanism, as
determined by the commission, to reimburse the Department of Water
Resources for purchases of electricity pursuant to Division 27
(commencing with Section 80000) of the Water Code. Community
facilities shall not be subject to any other departing load charge.
(2) An electrical utility shall subtract the bill credit
applicable to the benefiting account. The generation component
credited to the benefiting account shall not include the
cost-responsibility surcharge or other cost recovery mechanism, as
determined by the commission, to reimburse the Department of Water
Resources for purchases of electricity pursuant to Division 27
(commencing with Section 80000) of the Water Code. The electrical
utility shall ensure that the subscriber receives the full bill
credit to which it is entitled.
(3) If during the billing cycle the electricity usage charge
exceeds the bill credit, the benefiting account shall be billed for
the difference.
(4) If during the billing cycle the bill credit exceeds the
electricity usage charges, the difference shall be carried forward as
a financial credit to the next billing cycle.
(5) After the electricity usage charge and the credit are
determined for the last billing cycle of a 12-month period, the
electrical utility shall apply the net surplus electricity attributed
to the benefiting account as a bill credit for kilowatthours
subsequently supplied by the electrical utility to the subscribers,
if the electricity generated by the community facility during the
12-month period exceeds the electricity supplied by the electrical
utility during that same period.
(h) A subscriber organization shall provide not less than 120
days, notice to the electrical utility prior to the date the
community facility becomes operational.
(i) If a subscriber sells or cancels its interest in, or contract
with the owner or operator of, the community facility, or sells the
electricity generated by the community facility in a manner that is
not authorized by this section, upon the date of that event, no
further bill credit may be earned pursuant to this section, and only
credit earned prior to that date may be assigned by the subscriber
organization to a new benefiting account.
(j) The electrical utility shall own the renewable energy credits
generated by a community facility. The electricity generated by
community facilities shall be taken into account in determining
whether the electrical utility has met its renewables portfolio
requirements under Article 16 (commencing with Section 399.11) of
Part 1.
(k) This section does not require an electrical utility to
purchase electricity from a community facility.
(l) An electrical utility shall ensure that requests for
establishment of bill credits and changes to benefiting accounts are
processed in a time period not to exceed 30 days from the date it
receives the request.
(m) (1) A community facility may elect to provide energy only or
energy and capacity. An electrical utility shall ensure that a
request for a distribution level interconnection agreement from a
community facility is processed in a time period not to exceed 90
working days from the date the electrical utility receives a
completed application for interconnection.
(2) All costs associated with interconnection are the
responsibility of the owner or operator of the community facility.
The community facility shall apply for transmission level
interconnections through the Independent System Operator's generation
interconnection process.
(n) An electrical utility shall cooperate fully with community
facilities to implement this section.
(o) An electrical utility shall comply with the requirements
applicable to commercial speech described in Public Utilities
Commission Decision 10-05-050 as applied to the development, sale of
subscriptions, and operation of community facilities. Community
facilities may file a complaint with the commission for violation of
this subdivision.
SEC. 6. No reimbursement is required by this
act pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.