BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 472
                                                                  Page  1

          Date of Hearing:   August 21, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                     SB 472 (Hill) - As Amended:  August 5, 2013 

          Policy Committee:                             Governmental  
          Organization Vote:                            15 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill creates a three-year licensing exemption for the  
          owners of the card room located at Hollywood Park Racetrack by  
          authorizing the California Gambling Control Commission (GCC) to  
          exempt specified limited partners in limited partnerships from  
          specified licensing requirements. 

           FISCAL EFFECT  

          Costs associated with this legislation should be minor and  
          absorbable within existing GCC resources. 

           COMMENTS  

           Background and Purpose  . The Hollywood Park Racetrack and Card  
          Club is owned by a group of public pension plan investors.  Some  
          of those same public pension plans also own a share of the  
          currently closed Sahara Hotel in Las Vegas, which is undergoing  
          capital improvements and remodeling.

          Current law exempts the actual pension plans from being licensed  
          as card club owners, provided that the card clubs are located at  
          an "operating" racetrack.  However, current law also prevents an  
          entity owning a card club in California from also owning an  
          interest in a gambling facility that operates gaming that is  
          prohibited in California. 

          The original purchase of the Sahara Hotel by the pension plans  
          was made under the assumption at that time, that leasing out the  
          gaming casino at both the card club at Hollywood Park and the  
          Sahara Hotel would avoid the prohibition referenced above.  This  








                                                                 SB 472
                                                                  Page  2

          assumption was found to be incorrect as it is not allowed under  
          current law.

          This bill provides a three-year licensing exemption for the  
          owners of the card club which is intended to allow them time to  
          divest from their Sahara Hotel investments or the card club  
          investments.  
           
           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081