BILL NUMBER: SB 213	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 1, 2009
	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 19981 and 19984 of,  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 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, 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. 
   (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.
   (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.
   (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.
   (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 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. 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. 3.   SEC. 2.  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. 4.   SEC. 3.   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. 5.   SEC. 4.   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.