Bill Text: CA SB213 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Gambling licenses.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2010-01-19 - Stricken from Senate file. [SB213 Detail]

Download: California-2009-SB213-Amended.html

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BILL NUMBER: SB 213	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 18, 2009
	AMENDED IN SENATE  MAY 5, 2009
	AMENDED IN SENATE  APRIL 15, 2009

INTRODUCED BY   Senator Florez

                        FEBRUARY 23, 2009

   An act to amend Sections  19854, 19962, 19963, 19981,
  19981  and 19984 of,  and  to
add Section 19966 to,  and to add and repeal Section 19963.5 of,
 the Business and Professions Code, relating to gambling.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 213, as amended, Florez. Gambling establishments: proposition
players.
   (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 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   , notwithstanding those
prohibitions and other limitations on the expansion of gambling,
until January 1, 2020, prohibit the commission from issuing a
gambling license for a gambling establishment that is not licensed to
operate on January 1, 2010  . 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) 
    (2)  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) 
    (3)  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 delete an obsolete provision. 
   (5) 
    (4)  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) 
    (5)  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: yes.
State-mandated local program: 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 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 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,
2018, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2018, deletes or extends
that date. 
   SECTION 1.    Section 19963.5 is added to the 
 Business and Professions Code   , to read:  
   19963.5.  (a) Notwithstanding any other limitations imposed by
this article, the commission shall not issue a gambling license for a
gambling establishment that is not licensed to operate on January 1,
2010.
   (b) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date. 
   SEC. 4.   SEC. 2.   Section 19966 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.   SEC. 3.   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.
   SEC. 6.   SEC. 4.   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.
   SEC. 7.   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.