Bill Text: CA SB1125 | 2009-2010 | Regular Session | Amended

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

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Bill Title: Gambling Control Act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Vetoed) 2010-09-29 - In Senate. To unfinished business. (Veto) [SB1125 Detail]

Download: California-2009-SB1125-Amended.html

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BILL NUMBER: SB 1125	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 22, 2010
	AMENDED IN SENATE  MAY 27, 2010
	AMENDED IN SENATE  APRIL 20, 2010
	AMENDED IN SENATE  MARCH 22, 2010

INTRODUCED BY   Senator Florez

                        FEBRUARY 18, 2010

   An act to amend Sections  19867, 19911, and 19921
  19805 and 19867  of, and to add  Section
19843.5   Sections 19843.5 and 19943.5  to, the
Business and Professions Code, relating to gaming.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1125, as amended, Florez. Gambling Control Act.
   (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 requires that an application for a license or a
determination of suitability be accompanied by a deposit that, in the
judgment of the head of the entity within the Department of Justice
that is responsible for fulfilling the obligations imposed by the
act, will be adequate to pay the anticipated costs and charges
incurred in the investigation and processing of the application.
Existing law requires the head of that entity to adopt a schedule of
costs and charges of investigation for use as guidelines in fixing
the amount of any required deposit under these provisions.
   This bill would require the department  and commission
 to establish an enhanced fee schedule to provide for
additional fees to be charged to applicants who wish to have their
applications processed and background investigations conducted in an
expedited manner.
   (2) Existing law permits the commission to adopt regulations
related to the operation of a gambling establishment, as provided.
   This bill would provide that jackpot funds, to which players have
made contributions, are considered trust funds that are held for the
benefit of the players and are not the property of the gambling
establishment. 
   (3) Existing law prohibits a person under 21 years of age from
being eligible for a work permit in a gambling establishment.
Existing law also prohibits a person under 21 years of age from
entering the premises of a licensed gambling establishment, except as
provided.  
   This bill would permit a person between 18 and 21 years of age to
work in a gambling establishment in a classification that entails
providing services on and off the gaming floor that are not involved
in play of any controlled game, as provided.  
   (3) Existing law requires the department to approve the play of
any controlled game, including, but not limited to, placing
restrictions and limitations on how a controlled game is played.
 
   This bill would provide that a gambling establishment that
conducts play of a controlled game that has been approved by the
department, but is later found to be unlawful, has an absolute
defense to any criminal, administrative, or civil action, so long as
the game was being played in the manner approved.  
   (4) Existing law provides that a person is unsuitable to hold a
state gambling license if the person has any financial interest in
any business or organization that is engaged in any form of gambling,
as provided. However, existing law authorizes the commission to deem
an applicant suitable if the person has a 1% interest, or less, in a
business that conducts lawful gambling outside the state.  

   This bill would define financial interest for those purposes.

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 19805 of the  
Business and Professions Code   is amended to read: 
   19805.  As used in this chapter, the following definitions shall
apply:
   (a) "Affiliate" means a person who, directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under
common control with, a specified person.
   (b) "Applicant" means any person who has applied for, or is about
to apply for, a state gambling license, a key employee license, a
registration, a finding of suitability, a work permit, a manufacturer'
s or distributor's license, or an approval of any act or transaction
for which the approval or authorization of the commission or
department is required or permitted under this chapter.
   (c) "Banking game" or "banked game" does not include a controlled
game if the published rules of the game feature a player-dealer
position and provide that this position must be continuously and
systematically rotated amongst each of the participants during the
play of the game, ensure that the player-dealer is able to win or
lose only a fixed and limited wager during the play of the game, and
preclude the house, another entity, a player, or an observer from
maintaining or operating as a bank during the course of the game. For
purposes of this section, it is not the intent of the Legislature to
mandate acceptance of the deal by every player if the department
finds that the rules of the game render the maintenance of or
operation of a bank impossible by other means. The house shall not
occupy the player-dealer position.
   (d) "Chief" means the head of the entity within the department
that is responsible for fulfilling the obligations imposed upon the
department by this chapter.
   (e) "Commission" means the California Gambling Control Commission.

   (f) "Controlled gambling" means to deal, operate, carry on,
conduct, maintain, or expose for play any controlled game.
   (g) "Controlled game" means any controlled game, as defined by
subdivision (e) of Section 337j of the Penal Code.
   (h) "Department" means the Department of Justice.
   (i) "Director" means any director of a corporation or any person
performing similar functions with respect to any organization. 
   (j) "Financial interest" means to operate, control, or invest in a
business or organization and receive a pecuniary gain or sustain a
pecuniary loss from the business or organization.  
   (j) 
    (k)  "Finding of suitability" means a finding that a
person meets the qualification criteria described in subdivisions (a)
and (b) of Section 19857, and that the person would not be
disqualified from holding a state gambling license on any of the
grounds specified in Section 19859. 
   (k) 
    (l)  "Game" and "gambling game" means any controlled
game. 
   (l) 
    (m)  "Gambling" means to deal, operate, carry on,
conduct, maintain, or expose for play any controlled game. 
   (m) 
    (n)  "Gambling enterprise" means a natural person or an
entity, whether individual, corporate, or otherwise, that conducts a
gambling operation and that by virtue thereof is required to hold a
state gambling license under this chapter. 
   (n) 
    (o)  "Gambling enterprise employee" means any natural
person employed in the operation of a gambling enterprise, including,
without limitation, dealers, floor personnel, security employees,
countroom personnel, cage personnel, collection personnel,
surveillance personnel, data-processing personnel, appropriate
maintenance personnel, waiters and waitresses, and secretaries, or
any other natural person whose employment duties require or authorize
access to restricted gambling establishment areas. 
   (o) 
    (p)  "Gambling establishment," "establishment," or
"licensed premises," except as otherwise defined in Section 19812,
means one or more rooms where any controlled gambling or activity
directly related thereto occurs. 
   (p) 
    (q)  "Gambling license" or "state gambling license"
means any license issued by the state that authorizes the person
named therein to conduct a gambling operation. 
   (q) 
    (r)  "Gambling operation" means exposing for play one or
more controlled games that are dealt, operated, carried on,
conducted, or maintained for commercial gain. 
   (r) 
    (s)  "Gross revenue" means the total of all compensation
received for conducting any controlled game, and includes interest
received in payment for credit extended by an owner licensee to a
patron for purposes of gambling, except as provided by regulation.

   (s) 
    (t)  "Hours of operation" means the period during which
a gambling establishment is open to conduct the play of controlled
games within a 24-hour period. In determining whether there has been
expansion of gambling relating to "hours of operation," the
department shall consider the hours in the day when the local
ordinance permitted the gambling establishment to be open for
business on January 1, 1996, and compare the current ordinance and
the hours during which the gambling establishment may be open for
business. The fact that the ordinance was amended to permit gambling
on a day, when gambling was not permitted on January 1, 1996, shall
not be considered in determining whether there has been gambling in
excess of that permitted by Section 19961. 
   (t) 
    (u)  "House" means the gambling enterprise, and any
owner, shareholder, partner, key employee, or landlord thereof.

   (u) 
    (v)  "Independent agent," except as provided by
regulation, means any person who does either of the following:
   (1) Collects debt evidenced by a credit instrument.
   (2) Contracts with an owner licensee, or an affiliate thereof, to
provide services consisting of arranging transportation or lodging
for guests at a gambling establishment. 
   (v) 
    (w)  "Initial license" means the license first issued to
a person authorizing that person to commence the activities
authorized by that license. 
   (w) 
    (x)  "Institutional investor" means any retirement fund
administered by a public agency for the exclusive benefit of federal,
state, or local public employees, any investment company registered
under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et
seq.), any collective investment trust organized by banks under Part
Nine of the Rules of the Comptroller of the Currency, any closed-end
investment trust, any chartered or licensed life insurance company or
property and casualty insurance company, any banking and other
chartered or licensed lending institution, any investment advisor
registered under the Investment Advisors Act of 1940 (15 U.S.C. Sec.
80b-1 et seq.) acting in that capacity, and other persons as the
commission may determine for reasons consistent with the policies of
this chapter. 
   (x) 
    (y)  "Key employee" means any natural person employed in
the operation of a gambling enterprise in a supervisory capacity or
empowered to make discretionary decisions that regulate gambling
operations, including, without limitation, pit bosses, shift bosses,
credit executives, cashier operations supervisors, gambling operation
managers and assistant managers, managers or supervisors of security
employees, or any other natural person designated as a key employee
by the department for reasons consistent with the policies of this
chapter. 
   (y) 
    (z)  "Key employee license" means a state license
authorizing the holder to be employed as a key employee. 
   (z) 
    (aa)  "License" means a gambling license, key employee
license, or any other license issued by the commission pursuant to
this chapter or regulations adopted pursuant to this chapter.

   (aa) 
    (ab)  "Licensed gambling establishment" means the
gambling premises encompassed by a state gambling license. 
   (ab) 
    (ac)  "Limited partnership" means a partnership formed
by two or more persons having as members one or more general partners
and one or more limited partners. 
   (ac) 
    (ad)  "Limited partnership interest" means the right of
a general or limited partner to any of the following:
   (1) To receive from a limited partnership any of the following:
   (A) A share of the revenue.
   (B) Any other compensation by way of income.
   (C) A return of any or all of his or her contribution to capital
of the limited partnership.
   (2) To exercise any of the rights provided under state law.

   (ad) 
    (ae)  "Owner licensee" means an owner of a gambling
enterprise who holds a state gambling license. 
   (ae) 
    (af)  "Person," unless otherwise indicated, includes a
natural person, corporation, partnership, limited partnership, trust,
joint venture, association, or any other business organization.

   (af) 
    (ag)  "Player" means a patron of a gambling
establishment who participates in a controlled game. 
   (ag) 
    (ah)  "Player-dealer" and "controlled game featuring a
player-dealer position" refer to a position in a controlled game, as
defined by the approved rules for that game, in which seated player
participants are afforded the temporary opportunity to wager against
multiple players at the same table, provided that this position is
rotated amongst the other seated players in the game. 
   (ah) 
    (ai)  "Publicly traded racing association" means a
corporation licensed to conduct horse racing and simulcast wagering
pursuant to Chapter 4 (commencing with Section 19400) whose stock is
publicly traded. 
   (ai) 
    (aj)  "Qualified racing association" means a corporation
licensed to conduct horse racing and simulcast wagering pursuant to
Chapter 4 (commencing with Section 19400) that is a wholly owned
subsidiary of a corporation whose stock is publicly traded. 
   (aj) 
    (ak)  "Renewal license" means the license issued to the
holder of an initial license that authorizes the license to continue
beyond the expiration date of the initial license. 
   (ak) 
    (al)  "Work permit" means any card, certificate, or
permit issued by the commission, or by a county, city, or city and
county, whether denominated as a work permit, registration card, or
otherwise, authorizing the holder to be employed as a gambling
enterprise employee or to serve as an independent agent. A document
issued by any governmental authority for any employment other than
gambling is not a valid work permit for the purposes of this chapter.

   SECTION 1.   SEC. 2.   Section 19843.5
is added to the Business and Professions Code, to read:
   19843.5.  Jackpot funds held by a gambling establishment, to which
players have made contributions, following the deduction of any
administrative fee approved by the bureau, shall be considered to be
trust funds that are held for the benefit of the players. These
jackpot funds are not the property of the gambling establishment, but
are held solely for the benefit of the players.
   SEC. 2.   SEC. 3.   Section 19867 of the
Business and Professions Code is amended to read:
   19867.  (a) An application for a license or a determination of
suitability shall be accompanied by the deposit of a sum of money
that, in the judgment of the chief, will be adequate to pay the
anticipated costs and charges incurred in the investigation and
processing of the application. The chief shall adopt a schedule of
costs and charges of investigation for use as guidelines in fixing
the amount of any required deposit under this section. The schedule
shall distinguish between initial and renewal licenses with respect
to costs and charges.
   (b) During an investigation, the chief may require an applicant to
deposit any additional sums as are required by the department to pay
final costs and charges of the investigation.
   (c) Any money received from an applicant in excess of the costs
and charges incurred in the investigation or the processing of the
application shall be refunded pursuant to regulations adopted by the
department. At the conclusion of the investigation, the chief shall
provide the applicant a written, itemized accounting of the costs and
charges thereby incurred.
   (d) The department  and the commission  shall
establish an enhanced fee schedule for applicants who wish to have
their applications processed and background investigations conducted
in an expedited manner. The payment of those enhanced fees shall
entitle the applicant to have their applications processed in a
shorter period of time than normally would be the case. 
  SEC. 3.    Section 19911 of the Business and
Professions Code is amended to read:
   19911.  (a) No person under 21 years of age shall be eligible for
a work permit and no permit shall be issued to a person under 21
years of age.
   (b) A person between 18 and 21 years of age may be employed to
work in a gambling establishment, provided that they may not work as
dealers, floor men, or any other employment classification that
exclusively involves working on the floor of the gambling
establishment. A person between 18 and 21 years of age may be
employed in job classifications that entail providing services on and
off the gaming floor that are not involved in play of any controlled
game.  
  SEC. 4.    Section 19921 of the Business and
Professions Code is amended to read:
   19921.  (a) No person under 21 years of age shall be permitted to
enter upon the premises of a licensed gambling establishment, or any
part thereof, except the following:
   (1) An area, physically separated from any gambling area, for the
exclusive purpose of dining. For purposes of this subdivision, any
place wherein food or beverages are dispensed primarily by vending
machines shall not constitute a place for dining.
   (2) Restrooms.
   (3) A supervised room that is physically separated from any
gambling area and used primarily for the purpose of entertainment or
recreation.
   (4) A designated pathway to reach any of the areas described in
paragraphs (1) to (3), inclusive. To the extent that the designated
pathway requires an individual to enter upon or pass through the
gaming floor, all persons under 21 years of age shall be accompanied
by a person over 21 years of age or be in the presence of a gambling
establishment employee over 21 years of age.
   (5) In accordance with the provisions of subdivision (b) of
Section 19911.
   (b) No person under 21 years of age shall be permitted to loiter
in a gaming area.  
  SEC. 4.    Section 19943.5 is added to the Business and
Professions Code, to read:
   19943.5.  If a gambling establishment conducts play of a
controlled game that has been approved by the department pursuant to
Section 19826, and the controlled game is subsequently found to be
unlawful, so long as the game was played in the manner approved, the
approval by the department shall be an absolute defense to any
criminal, administrative, or civil action that may be brought.