BILL NUMBER: SB 213 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 5, 2009
AMENDED IN SENATE APRIL 15, 2009
INTRODUCED BY Senator Florez
FEBRUARY 23, 2009
An act to amend Section 19984 of Sections
19854, 19962, 19963, 19981, and 19984 of, and to add Section 19966
to, the Business and Professions Code, relating to gambling.
LEGISLATIVE COUNSEL'S DIGEST
SB 213, as amended, Florez. Gambling establishments: proposition
players.
The
(1) The Gambling Control Act
provides for the licensure of certain individuals and establishments
involved in various gambling activities, and for the regulation of
those activities, by the California Gambling Control Commission.
Existing law provides for the enforcement of those activities by the
Department of Justice. Existing law allows
provides that any violation of the act for which a penalty is not
provided is punishable as a misdemeanor.
The act requires certain persons employed in the operation of a
gambling enterprise, known as key employees, to apply for and obtain
a key employee license that entitles the holder to work as a key
employee in any key employee position at any gambling establishment,
provided that the key employee terminates employment with one
gambling establishment before commencing work for another. Existing
law requires the commission to establish a program for personal
portable licenses for key employees, and to implement that program on
or before July 1, 2008.
This bill would provide, pursuant to those provisions, if a key
employee transfers to another jurisdiction that requires a key
employee to have a local license in addition to a state license, the
state license may serve as a temporary local license upon the
gambling establishment giving notice to the local licensing
authority.
(2) The act prohibits, until January 1, 2015, the governing body
and the electors of a county, city, or city and county from
authorizing or expanding any legal gaming beyond that permitted on
January 1, 1996. Additionally, the commission is prohibited, until
January 1, 2015, from issuing a gambling license for a gambling
establishment that was not licensed to operate on December 31, 1999,
except as specified.
This bill would extend the operation of these provisions to
January 1, 2018. The bill also would provide that a city, county, or
city and county that issues local gambling licenses, key employee
licenses, or work permits shall not appoint a person to manage or
oversee the issuance of those licenses or permits who, within 2 years
prior to that appointment, was employed or retained by, or derived
substantial income from, a gambling establishment, or was a principal
in a partnership or corporation that was retained by, or derived
substantial income from, any gambling establishment.
(3) The act prohibits a member of the commission, the executive
director, the chief, and any employee of the commission or Department
of Justice designated by regulation, for a period of 3 years after
leaving office or terminating employment, for compensation, from
acting as agent or attorney for, or otherwise representing, any other
person by making any formal or informal appearance, or by making any
oral or written communication, before the commission or the
department, or any officer or employee thereof, if the appearance or
communication is for the purpose of influencing administrative
action, or influencing any action or proceeding involving the
issuance, amendment, awarding, or revocation of a permit, license, or
approval.
This bill additionally would prohibit a member of the commission,
the executive director, the chief, and any employee of the commission
or department designated by regulation, for a period of 2 years
after leaving office or terminating employment, from being employed
as a consultant or key employee of a gambling establishment.
(4) The act allows a licensed
gambling establishment to contract with a 3rd party for the purpose
of providing proposition player services, subject to specified
conditions.
This bill would prohibit the duration of a contract between a
gambling establishment and a 3rd-party provider of proposition player
services from exceeding 2 years. The bill would provide
that nothing in the Gambling Control Act shall be construed to
prohibit a 3rd-party provider of proposition player services, or a
player employed by such a provider, from servicing more than one
table at a time.
The bill would delete an obsolete provision.
(5) Because this bill would impose new regulatory requirements,
violations of which would be punishable as misdemeanors, this bill
would impose a state-mandated local program.
(6) 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. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no
yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 19854 of the
Business and Professions Code is amended to read:
19854. (a) Every key employee shall apply for and obtain a key
employee license.
(b) No person may be issued a key employee license unless the
person would qualify for a state gambling license.
(c) A key employee license shall entitle the holder to work as a
key employee in any key employee position at any gambling
establishment, provided that the key employee terminates employment
with one gambling establishment before commencing work for another.
(d) The commission shall establish a program for portable
personal portable licenses for key employees,
as well as a process by which valid key employee licenses then in
effect shall be converted to personal portable licenses. The
commission may, as part of that process, establish a fee to be paid
by a key employee when seeking a personal portable license. The
commission shall seek to implement the requirements imposed by this
subdivision on or before July 1, 2008.
(e) Pursuant to subdivision (d), if a key employee transfers to
another jurisdiction that requires a key employee to have a local
license in addition to a state license, the state license may serve
as a temporary local license upon the gambling establishment giving
notice to the local licensing authority.
SEC. 2. Section 19962 of the Business
and Professions Code , as added by Section 4 of Chapter
854 of the Statutes of 2006, is amended to read:
19962. (a) On and after the effective date of this chapter,
neither the governing body nor the electors of a county, city, or
city and county that has not authorized legal gaming within its
boundaries prior to January 1, 1996, shall authorize legal gaming.
(b) An ordinance in effect on January 1, 1996, that authorizes
legal gaming within a city, county, or city and county may not be
amended to expand gaming in that jurisdiction beyond that permitted
on January 1, 1996.
(c) This section shall become operative on January 1, 2010.
(d) This section shall remain in effect only until January 1,
2015 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2015 2018 , deletes or
extends that date.
SEC. 3. Section 19963 of the Business
and Professions Code is amended to read:
19963. (a) In addition to any other limitations on the expansion
of gambling imposed by Section 19962 or any provision of this
chapter, the commission may not issue a gambling license for a
gambling establishment that was not licensed to operate on December
31, 1999, unless an application to operate that establishment was on
file with the department prior to September 1, 2000.
(b) This section shall remain in effect only until January 1,
2015 2018 , and as of that date is
repealed, unless a later enacted statute, that is enacted before
January 1, 2015 2018 , deletes or
extends that date.
SEC. 4. Section 19 966 is added to the
Business and Professions Code , to read:
19966. A city, county, or city and county that issues local
gambling licenses, key employee licenses, or work permits shall not
appoint a person to manage or oversee the issuance of those licenses
or permits who, within two years prior to that appointment, was
employed or retained by, or derived substantial income from, a
gambling establishment, or was a principal in a partnership or
corporation that was retained by, or derived substantial income from,
any gambling establishment.
SEC. 5. Section 19981 of the Business
and Professions Code is amended to read:
19981. (a) A member of the commission, the executive director,
the chief, and any employee of the commission or department
designated by regulation, shall not, for a period of three years
after leaving office or terminating employment, for compensation, act
as agent or attorney for, or otherwise represent, any other person
by making any formal or informal appearance, or by making any oral or
written communication, before the commission or the department, or
any officer or employee thereof, if the appearance or communication
is for the purpose of influencing administrative action, or
influencing any action or proceeding involving the issuance,
amendment, awarding, or revocation of a permit, license, or approval.
(b) A member of the commission shall not solicit or accept
campaign contributions from any person, including any applicant or
licensee.
(c) A member of the commission, the executive director, the chief,
and any employee of the commission or department designated by
regulation, shall not, for a period of two years after leaving office
or terminating employment, be employed as a consultant or key
employee of a gambling establishment.
SECTION 1. SEC. 6. Section 19984 of
the Business and Professions Code is amended to read:
19984. Notwithstanding any other provision of law, a licensed
gambling establishment may contract with a third party for the
purpose of providing proposition player services, subject to the
following conditions:
(a) Any agreement, contract, or arrangement between a gambling
establishment and a third-party provider of proposition player
services shall be approved in advance by the department, and in no
event shall a gambling establishment or the house have any interest,
whether direct or indirect, in funds wagered, lost, or won.
(b) The duration of an agreement, contract, or arrangement between
a gambling establishment and a third-party provider of proposition
player services shall not exceed two years.
(c) The commission shall establish reasonable criteria for, and
require the licensure and registration of, any person or entity that
provides proposition player services to gambling establishments
pursuant to this section, including owners, supervisors, and players.
Those employed by a third-party provider of proposition player
services, including owners, supervisors, observers, and players,
shall wear a badge which clearly identifies them as proposition
players whenever they are present within a gambling establishment.
The commission may impose licensing requirements, disclosures,
approvals, conditions, or limitations as it deems necessary to
protect the integrity of controlled gambling in this state, and may
assess and collect reasonable fees and deposits as necessary to
defray the costs of providing this regulation and oversight.
(d) The department, pursuant to regulations of the commission, is
empowered to perform background checks, financial audits, and other
investigatory services as needed to assist the commission in
regulating third-party providers of proposition player services, and
may assess and collect reasonable fees and deposits as necessary to
defray the costs of providing this regulation and oversight. The
department may adopt emergency regulations in order to implement this
subdivision.
(e) Nothing in this chapter shall be construed to prohibit a
third-party provider of proposition player services, or a player
employed by such a provider, from servicing more than one table at a
time.
SEC. 7. 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.