Bill Text: CA AB1331 | 2017-2018 | Regular Session | Amended
Bill Title: Gambling licenses: corporations.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2018-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1331 Detail]
Download: California-2017-AB1331-Amended.html
|
Amended
IN
Assembly
March 21, 2017 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 1331 |
| Introduced by Assembly Member Gipson |
February 17, 2017 |
An act to amend Section 65000 of the Government Code, relating to land use. Sections 19882 and 19883 of the Business and Professions Code, relating to gambling.
LEGISLATIVE COUNSEL'S DIGEST
AB 1331, as amended, Gipson.
Land use: planning and zoning. Gambling licenses: corporations.
The Gambling Control Act, among other things, provides the qualifications and procedures for a corporation to be licensed as the owner of a gambling enterprise and requires shareholders, lenders, and holders of evidence of indebtedness, among other types of individuals doing business on behalf of or with the corporation to be licensed individually. An individual who owns any security issued by a licensed corporation and who has been denied a license or had a license revoked is required to sell the security for an amount not greater than fair market value within 60 calendar days of the license denial or revocation, unless that 60-day time period is extended, as specified.
This bill would extend certain time periods relating to the licensing of individuals doing business on behalf of or with a corporation that is licensed as the owner of a gambling enterprise. The bill would extend the time period that an individual is required to sell a security in the corporation from 60 to 75 calendar days upon the individual’s license denial or revocation. The bill would modify the time period for a corporation to notify the Department of Justice of a change in a corporate officer, director, or key employee from 10 business days to 20 calendar days and extend the time period for when that individual is required to apply for his or her license from 30 to 40 calendar days after he or she becomes an officer, director, or key employee.
The Planning and Zoning Law, among other things, requires the legislative body of each county and city to adopt a comprehensive, long-term general plan for the physical development of the county or city and of any land outside its boundaries that relates to its planning, and provides for the adoption and administration of zoning laws, ordinances, rules, and regulations by counties and cities.
This bill would make nonsubstantive changes to the Planning and Zoning Law.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 19882 of the Business and Professions Code is amended to read:19882.
(a) If at any time the commission denies a license to, or revokes the license of, an individual owner of any security issued by a corporation that applies for or holds an owner license, the commission shall immediately notify the individual and the corporation of that fact. The owner of the security shall sell the security for an amount not greater than fair market value, within(b) Beginning upon the date when the commission serves
notice of the denial upon the corporation, it is unlawful for the denied security owner to do any of the following:
(1) Receive any dividend, income, or interest upon any security described in subdivision (a), except dividends equal to the good faith estimate of the owner’s personal share of any income tax due on the ownership interest until the date of the sale, as determined in writing by an independent certified public accountant, or as may be necessary to protect the election of the gambling enterprise to be treated as an “S corporation” under Subchapter S (commencing with Section 1361) of Chapter 1 of Subtitle A of the Internal Revenue Code.
(2) Exercise, directly or through any trustee or nominee, any voting right conferred by any security described in subdivision (a).
(3) Receive any remuneration in any form
from the corporation for services rendered or for any other purpose.
(c) Every security issued by a corporate owner licensee shall bear a statement, on both sides of the certificate evidencing the security, of the restrictions imposed by this section.
SEC. 2.
Section 19883 of the Business and Professions Code is amended to read:19883.
(a) To the extent required by this chapter, officers and directors, shareholders, lenders, holders of evidence of indebtedness, underwriters, agents, or employees of a corporate owner licensee shall be licensed individually. The corporation shall require these persons to apply for a gambling license, and shall notify the department of every change of corporate officers, directors, or key employees within(b) The corporation shall immediately remove any officer or director required to apply for a license from any office or directorship if any of the following apply to that officer or director:
(1) He or she fails to apply for the license within 30 40 calendar days after becoming an officer or director.
(2) He or she is denied a license.
(3) His or her license is revoked.
(c) If the
license of any officer or director is suspended, the corporation, immediately and for the duration of the suspension, shall suspend that officer or director.
(d) If any shareholder who is required to apply for a gambling license fails to apply for the license within the time required, the shareholder shall be deemed to have been denied a license for purposes of subdivision (b) of Section 19882.
(e) If any person, other than an officer, director, or shareholder, who is required to apply for a gambling license fails to do so, the failure may be deemed to be a failure of the corporate owner licensee to require the application.
This title shall be known, and may be cited, as the Planning and Zoning Law.
