Bill Text: CA SB1390 | 2011-2012 | Regular Session | Amended
Bill Title: Gambling: sports wagering.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2012-08-16 - Set, second hearing. Held in committee and under submission. [SB1390 Detail]
Download: California-2011-SB1390-Amended.html
BILL NUMBER: SB 1390 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JULY 3, 2012
AMENDED IN ASSEMBLY JUNE 27, 2012
AMENDED IN ASSEMBLY JUNE 13, 2012
AMENDED IN SENATE MAY 25, 2012
AMENDED IN SENATE APRIL 19, 2012
AMENDED IN SENATE APRIL 9, 2012
AMENDED IN SENATE MARCH 28, 2012
INTRODUCED BY Senator Wright
(Coauthor: Senator Anderson)
FEBRUARY 24, 2012
An act to amend Section 19868 of, and to add
Chapter 4.7 (commencing with Section 19750) to Division 8 of
, the Business and Professions Code, and to amend Sections
336.9 and 337a of the Penal Code, relating to gambling.
LEGISLATIVE COUNSEL'S DIGEST
SB 1390, as amended, Wright. Gambling: sports wagering.
(1) The California Constitution prohibits various gaming
activities within the state, including casino-style gaming, but
authorizes the Governor, subject to ratification by the Legislature,
to negotiate and conclude compacts for the operation of slot machines
and the conduct of lottery games and banking and percentage card
games by federally recognized Indian tribes on Indian lands in
California in accordance with federal law. The California
Constitution also authorizes the Legislature to provide for the
regulation of horse racing, charitable bingo games, the California
State Lottery, and charitable raffles.
Existing law prohibits a person, whether or not for gain, hire, or
reward, from making a betting pool or placing a bet or wager on the
result of any contest or event, including a sporting event, as
specified.
The Gambling Control Act provides for the licensure of certain
individuals and establishments that conduct controlled games, as
defined, and for the regulation of these gambling activities by the
California Gambling Control Commission. Existing law provides for the
enforcement of those regulations by the Department of Justice. Any
violation of these provisions is punishable as a misdemeanor, as
specified.
The Horse Racing Law provides for the licensure of every person
who participates in, or has anything to do with, the racing of
horses, and every employee of a parimutuel department by the
California Horse Racing Board. The board is responsible for adopting
rules and regulations for the protection of the public, the control
of horse racing, and parimutuel wagering, as well as enforcing all
laws, rules, and regulations dealing with horse racing and parimutuel
wagering. The law permits the board to authorize an association
licensed to conduct a racing meeting to also operate a satellite
wagering facility at its racetrack inclosure, and for fairs to locate
a satellite wagering facility at their fairgrounds, under specified
conditions. Any violation of these provisions is punishable as a
misdemeanor.
This bill would authorize the owner or operator of a gambling
establishment, or the owner or operator of a horse racing
track, or including a horse racing
association, or of a satellite wagering facility, with a
current license, to conduct wagering on professional and collegiate
sports or athletic events , other than on collegiate
sports or athletic events that take place in California or in which
any California college team participates, by applying to the
California Gambling Control Commission or the California Horse Racing
Board, as specified, for authorization to conduct sports wagering,
and by paying an annual licensing fee, as specified. The bill would
require the commission and the board to adopt regulations to
implement these provisions. The bill would authorize the commission
and the board to adopt regulations establishing fees in a reasonable
amount to recover their costs relating to the administration of these
provisions. The bill would authorize the department to adopt
regulations establishing fees in the reasonable amount necessary to
recover costs incurred relating to the enforcement of these
provisions. The bill would require the department to, among
other things, investigate any request made by the board or the
commission in connection with an application for authorization, and
to investigate alleged violations of the above provisions. The bill
would authorize the board, commission, and department to regulate
sports wagering to the same extent these entities currently regulate
other legal gambling in this state, including the ability to audit
the books and records of a licensed entity, as defined. The bill
would also prohibit a licensed operator from, among other things,
accepting a wager from any person who is under 21 years of age or
whose name appears on a self-exclusion list. Any violation of these
provisions would be punishable as a crime. By creating a new crime,
the bill would impose a state-mandated local program.
(2) Existing federal law, the Indian Gaming Regulatory Act of
1988, provides for the negotiation and execution of tribal-state
gaming compacts for the purpose of authorizing certain types of
gaming on Indian lands within a state. The California Constitution
authorizes the Governor to negotiate and conclude compacts, subject
to ratification by the Legislature. Existing law expressly ratifies a
number of tribal-state gaming compacts, and amendments of
tribal-state gaming compacts, between the State of California and
specified Indian tribes.
This bill would provide that a federally recognized Indian tribe
may conduct sports wagering on Indian lands consistent with the
requirements of the federal Indian Gaming Regulatory Act of 1988, and
under terms no more stringent than those applicable to any other
owner or operator in the state.
(3) The Gambling Control Act requires the Department of Justice to
investigate an applicant for a gambling license. Existing law
provides that, if denial of the application, or approval of the
license with restrictions or conditions on the license, is
recommended, the chief of the entity within the department that is
responsible for enforcing these provisions shall prepare and file
with the commission his or her written reasons upon which the
recommendation is based.
This bill would require the chief of that entity within the
department to file with the commission the written reasons upon which
the recommendation is based, together with all relevant documents
and information.
(4)
(3) 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. Chapter 4.7 (commencing with Section 19750) is added to
Division 8 of the Business and Professions Code, to read:
CHAPTER 4.7. SPORTS WAGERING
19750. The following entities may conduct wagering on
professional and collegiate sports or athletic sports
events as authorized pursuant to this chapter:
(a) The owner or operator of a gambling establishment with a
current license issued by the California Gambling Control Commission
pursuant to Chapter 5 (commencing with Section 19800).
(b) The owner or operator of a horse racing track or
, including a horse racing association, or
of a satellite wagering facility , with a current
license issued by the California Horse Racing Board pursuant to
Chapter 4 (commencing with Section 19400). A licensed horse racing
track or satellite wagering facility may qualify for an authorization
to engage in sports wagering pursuant to this subdivision only if it
has an agreement in place with the organization recognized by the
board that is responsible for negotiating purse agreements, satellite
wagering agreements, and all other business agreements on behalf of
the horsemen participating in a racing meeting.
19751. A federally recognized Indian tribe may conduct sports
wagering on Indian lands consistent with the requirements of the
federal Indian Gaming Regulatory Act of 1988 (18 U.S.C. Secs. 1166 to
1168, incl., and 25 U.S.C. Sec. 2701 et seq.), and under terms no
more stringent than those applicable to any other owner or operator
in the state.
19752. As used in this chapter, the following definitions shall
apply:
(a) "Board" means the California Horse Racing Board.
(b) "Commission" means the California Gambling Control Commission.
(c) "Department" means the Department of Justice.
(d) "Licensed operator" means any of the entities listed in
Section 19750 that is authorized pursuant to this chapter to conduct
sports wagering.
(e) "Prohibited sports event" means any collegiate sport or
athletic event that takes place in California, or a sports event in
which any California college team participates, regardless of where
the event takes place.
(f) "Sports event" shall include any professional sports or
athletic event, and any collegiate sports or athletic event, except a
prohibited sports event.
(g) "Sports wagering" means the business of accepting wagers on a
sports event by any legal system or method of wagering, including,
but not limited to, exchange wagering, parlays, over and under, money
line, and straight bets.
19754. (a) (1) An owner or operator of a gambling establishment
seeking to conduct sports wagering shall apply to the commission for
authorization to conduct sports wagering.
(2) An owner or operator of a horse racing track or satellite
wagering facility seeking to conduct sports wagering shall apply to
the board for authorization to conduct sports wagering.
(b) The board or the commission, as the case may be, shall hear
and decide promptly, and in reasonable order, all applications to
conduct sports wagering from owners and operators of licensed
gambling establishments, licensed horse racing tracks, and satellite
wagering facilities. Authorization to conduct sports wagering shall
not be unreasonably withheld for any applicant that is in good
standing and has a current license issued pursuant to Chapter 4
(commencing with Section 19400) or Chapter 5 (commencing with Section
19800).
(c) An owner or operator of a gambling establishment and an owner
or operator of a horse racing track or satellite wagering facility
that conducts sports wagering shall pay an annual licensing fee of
three thousand dollars ($3,000) to the State Department of Alcohol
and Drug Programs for deposit in the Gambling Addiction Program Fund.
19756. (a) Application for authorization to conduct sports
wagering shall be made on forms furnished by the board and the
commission.
(b) The application for authorization to conduct sports wagering
shall include all of the following:
(1) The name of the licensee.
(2) The name and location of the gambling establishment, horse
racing track, or satellite wagering facility.
(3) The names of all persons directly or indirectly interested in
the business and the nature of the interest.
(4) A description of the proposed sports wagering operation.
(5) Any other information and details the board or the commission
may require in order to discharge its duty properly.
19758. (a) The board and the commission shall adopt regulations
for the administration of this chapter, and may adopt regulations
establishing fees in a reasonable amount necessary to recover costs
incurred by the board or the commission relating to the
administration of this chapter.
(b) The board and the commission shall consult with each other in
the adoption of regulations pursuant to this section, and may adopt
joint regulations.
19760. The regulations adopted by the board and the commission
shall do all of the following:
(a) Provide for the approval of wagering rules and equipment by
the department to ensure fairness to the public and compliance with
state law, including, but not limited to, all of the following:
(1) Acceptance of wagers on a series of sports events.
(2) Types of wagering tickets that may be used.
(3) The method of issuing tickets.
(b) Govern all of the following:
(1) The extension of credit.
(2) The cashing, deposit, and redemption of checks or other
negotiable instruments.
(3) The amount of cash reserves to be maintained by licensed
operators to cover winning wagers.
(4) The provision of reliable records, accounts, and reports of
transactions, operations, and events, the method of accounting to be
used by licensed operators, and the types of records required to be
maintained.
19762. The sports wagering authorized pursuant to this chapter
may be conducted only at the gambling establishment, horse racing
track, or satellite wagering facility of the licensed operator, or on
Indian lands consistent with the federal Indian Gaming Regulatory
Act of 1988 (18 U.S.C. Secs. 1166 to 1168, incl., and 25 U.S.C. Sec.
2701 et seq.).
19764. A licensed operator shall not do any of the following:
(a) Accept a wager on a sports event from any person who is not
physically present at the facility where the sports wagering is
conducted.
(b) Accept a wager from a person using any form of credit to place
the wager.
(c) Accept a wager from a person who is under 21 years of age.
(d) Admit into the sports wagering facility, or accept wagers
from, any person whose name appears on any self-exclusion list.
19766. A licensed operator shall establish the odds it will pay
on wagers placed on sports events.
19768. (a) A licensed operator shall not conduct any sports
wagering in violation of any provision of this chapter, any
regulation adopted pursuant to this chapter, or any governing local
ordinance.
(b) Any person who willfully violates any provision of this
chapter is guilty of a misdemeanor.
19770. (a) The department shall have all of the following
responsibilities:
(1) To investigate any request made by the board or the commission
in connection with an application for authorization pursuant to this
chapter. The department may recommend the denial or the limitation,
conditioning, or restriction of any authorization.
(2) To monitor the conduct of all licensed operators and other
persons having a material involvement, directly or indirectly, with a
sports wagering operation.
(3) To investigate suspected violations of this chapter.
(4) To investigate complaints that are lodged against licensed
operators, or other persons associated with a sports wagering
operation, by members of the public.
(5) To initiate, when appropriate, disciplinary actions. In
connection with any disciplinary action, the department may seek
restriction, limitation, suspension, or revocation of any license,
permit, authorization, or approval pursuant to this chapter, Chapter
4 (commencing with Section 19400), or Chapter 5 (commencing with
Section 19800), or the imposition of any fine upon any person
licensed, permitted, authorized, or approved pursuant to those
chapters.
(6) To adopt regulations reasonably related to its functions and
duties as specified in this chapter.
(7) To adopt regulations establishing fees in the reasonable
amount necessary to recover costs incurred by the department relating
to the enforcement of this chapter.
(b) The department has all powers necessary and proper to enable
it to carry out fully and effectually its duties and responsibilities
specified in this chapter.
19772. (a) The department shall make appropriate investigations
as follows:
(1) To determine whether there has been any violation of this
chapter or any regulations adopted under this chapter.
(2) To determine any facts, conditions, practices, or matters that
it may deem necessary or proper to aid in the enforcement of this
chapter or any regulation adopted under this chapter.
(3) To aid in adopting regulations.
(b) If, after any investigation, the department is satisfied that
a license, permit, authorization, or approval pursuant to this
chapter, Chapter 4 (commencing with Section 19400), or Chapter 5
(commencing with Section 19800) should be suspended or revoked, it
shall file an accusation in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
(c) In addition to any action that the board or commission may
take against a license, permit, finding of suitability, or approval,
the board or commission may also require the payment of fines or
penalties. However, any fine imposed shall not exceed twenty thousand
dollars ($20,000) for each separate violation of any provision of
this chapter or any regulation adopted under this chapter.
19773. The board, commission, and department shall have the
authority to regulate sports wagering to the same extent that these
entities currently regulate other legal gambling in this state,
including the ability to audit the books and records of a licensed
operator.
SEC. 2. Section 19868 of the Business and
Professions Code is amended to read:
19868. (a) Within a reasonable time after the filing of an
application and any supplemental information the department may
require, and the deposit of any fee required pursuant to Section
19867, the department shall commence its investigation of the
applicant and, for that purpose, may conduct any proceedings it deems
necessary. To the extent practicable, all applications shall be
acted upon within 180 calendar days of the date of submission of a
completed application. If an investigation has not been concluded
within 180 days after the date of submission of a completed
application, the department shall inform the applicant in writing of
the status of the investigation and shall also provide the applicant
with an estimated date on which the investigation may reasonably be
expected to be concluded.
(b) If denial of the application, or approval of the license with
restrictions or conditions on the license, is recommended, the chief
shall prepare and file with the commission his or her written reasons
upon which the recommendation is based, together with all relevant
documents and information.
(1) Prior to filing his or her recommendation with the commission,
the chief shall meet with the applicant, or the applicant's duly
authorized representative, and inform him or her generally of the
basis for any proposed recommendation that the application be denied,
restricted, or conditioned.
(2) Not less than 10 business days prior to the meeting of the
commission at which the application is to be considered, the
department shall deliver to the applicant a summary of the chief's
final report and recommendation.
(3) This section requires the department neither to divulge to the
applicant any confidential information received from any law
enforcement agency or any information received from any person with
assurances that the information would be maintained confidential, nor
to divulge any information that might reveal the identity of any
informer or jeopardize the safety of any person.
(c) If a restriction or condition on the license is recommended,
the chief shall prepare and file with the commission his or her
written reasons upon which the recommendation is based, together with
all relevant documents and information.
(1) Prior to filing his or her recommendation with the commission,
and not less than 10 business days prior to the meeting of the
commission at which the application is to be considered, the chief
shall inform the applicant in writing generally of the basis for any
proposed recommendation that the application be restricted or
conditioned, including the legal and factual grounds on which the
recommendation is based.
(2) This section does not require the department to divulge to the
applicant any confidential information received from any law
enforcement agency or any information received from any person with
assurances that the information would be maintained confidential, or
to divulge any information that might reveal the identity of any
informer or jeopardize the safety of any person.
(d) A recommendation of denial of an application shall be without
prejudice to a new and different application filed in accordance with
applicable regulations.
SEC. 3. SEC. 2. Section 336.9 of the
Penal Code is amended to read:
336.9. (a) Notwithstanding Section 337a, and except as provided
in subdivision (b), any person who, not for gain, hire, or reward
other than that at stake under conditions available to every
participant, knowingly participates in any of the ways specified in
paragraph (2), (3), (4), (5), or (6) of subdivision (a) of Section
337a in any bet, bets, wager, wagers, or betting pool or pools made
between the person and any other person or group of persons who are
not acting for gain, hire, or reward, other than that at stake under
conditions available to every participant, upon the result of any
lawful trial, or purported trial, or contest, or purported contest,
of skill, speed, or power of endurance of person or animal, or
between persons, animals, or mechanical apparatus, is guilty of an
infraction, punishable by a fine not to exceed two hundred fifty
dollars ($250).
(b) Subdivision (a) does not apply to any of the following
situations:
(1) Any bet, bets, wager, wagers, or betting pool or pools made
online.
(2) Betting pools with more than two thousand five hundred dollars
($2,500) at stake.
(3) Any sports wagering authorized pursuant to Chapter 4.7
(commencing with Section 19750) of Division 8 of the Business and
Professions Code.
SEC. 4. SEC. 3. Section 337a of the
Penal Code is amended to read:
337a. (a) Except as provided in Section 336.9 and as authorized
pursuant to Chapter 4.7 (commencing with Section 19750) of Division 8
of the Business and Professions Code, every person who engages in
one of the following offenses shall be punished for a first offense
by imprisonment in a county jail for a period of not more than one
year or in the state prison, or by a fine not to exceed five thousand
dollars ($5,000), or by both imprisonment and fine:
(1) Pool selling or bookmaking, with or without writing, at any
time or place.
(2) Whether for gain, hire, reward, or gratuitously, or otherwise,
keeps or occupies, for any period of time whatsoever, any room,
shed, tenement, tent, booth, building, float, vessel, place, stand,
or enclosure, of any kind, or any part thereof, with a book or books,
paper or papers, apparatus, device, or paraphernalia, for the
purpose of recording or registering any bet or bets, any purported
bet or bets, wager or wagers, any purported wager or wagers, selling
pools, or purported pools, upon the result, or purported result, of
any trial, purported trial, contest, or purported contest, of skill,
speed, or power of endurance of person or animal, or between persons,
animals, or mechanical apparatus, or upon the result, or purported
result, of any lot, chance, casualty, unknown, or contingent event
whatsoever.
(3) Whether for gain, hire, reward, or gratuitously, or otherwise,
receives, holds, or forwards, or purports or pretends to receive,
hold, or forward, in any manner whatsoever, any money, thing, or
consideration of value, or the equivalent or memorandum thereof,
staked, pledged, bet, or wagered, or to be staked, pledged, bet, or
wagered, or offered for the purpose of being staked, pledged, bet, or
wagered, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed,
or power of endurance of person or animal, or between persons,
animals, or mechanical apparatus, or upon the result, or purported
result, of any lot, chance, casualty, unknown, or contingent event
whatsoever.
(4) Whether for gain, hire, reward, or gratuitously, or otherwise,
at any time or place, records, or registers any bet or bets, wager
or wagers, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed,
or power of endurance of person or animal, or between persons,
animals, or mechanical apparatus, or upon the result, or purported
result, of any lot, chance, casualty, unknown, or contingent event
whatsoever.
(5) Being the owner, lessee, or occupant of any room, shed,
tenement, tent, booth, building, float, vessel, place, stand,
enclosure, or grounds, or any part thereof, whether for gain, hire,
reward, or gratuitously, or otherwise, permits that space to be used
or occupied for any purpose, or in any manner prohibited by paragraph
(1), (2), (3), or (4).
(6) Lays, makes, offers, or accepts any bet or bets, or wager or
wagers, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed,
or power of endurance of person or animal, or between persons,
animals, or mechanical apparatus.
(b) In any accusatory pleading charging a violation of this
section, if the defendant has been once previously convicted of a
violation of any subdivision of this section, the previous conviction
shall be charged in the accusatory pleading, and, if the previous
conviction is found to be true by the jury, upon a jury trial, or by
the court, upon a court trial, or is admitted by the defendant, the
defendant shall, if he or she is not imprisoned in the state prison,
be imprisoned in a county jail for a period of not more than one year
and pay a fine of not less than one thousand dollars ($1,000) and
not to exceed ten thousand dollars ($10,000). Nothing in this
paragraph shall prohibit a court from placing a person subject to
this subdivision on probation. However, that person shall be required
to pay a fine of not less than one thousand dollars ($1,000) nor
more than ten thousand dollars ($10,000) or be imprisoned in a county
jail for a period of not more than one year, as a condition thereof.
In no event does the court have the power to absolve a person
convicted pursuant to this subdivision from either being imprisoned
or from paying a fine of not less than one thousand dollars ($1,000)
and not more than ten thousand dollars ($10,000).
(c) In any accusatory pleading charging a violation of this
section, if the defendant has been previously convicted two or more
times of a violation of any subdivision of this section, each
previous conviction shall be charged in the accusatory pleadings. If
two or more of the previous convictions are found to be true by the
jury, upon a jury trial, or by the court, upon a court trial, or are
admitted by the defendant, the defendant shall, if he or she is not
imprisoned in the state prison, be imprisoned in a county jail for a
period of not more than one year or pay a fine of not less than one
thousand dollars ($1,000) nor more than fifteen thousand dollars
($15,000), or be punished by both imprisonment and fine. Nothing in
this paragraph shall prohibit a court from placing a person subject
to this subdivision on probation. However, that person shall be
required to pay a fine of not less than one thousand dollars ($1,000)
nor more than fifteen thousand dollars ($15,000), or be imprisoned
in a county jail for a period of not more than one year as a
condition thereof. In no event does the court have the power to
absolve a person convicted and subject to this subdivision from
either being imprisoned or from paying a fine of not more than
fifteen thousand dollars ($15,000).
(d) Except where the existence of a previous conviction of any
subdivision of this section was not admitted or not found to be true
pursuant to this section, or the court finds that a prior conviction
was invalid, the court shall not strike or dismiss any prior
convictions alleged in the information or indictment.
(e) This section applies not only to persons who commit any of the
acts designated in paragraphs (1) to (6), inclusive, of subdivision
(a), as a business or occupation, but also applies to every person
who in a single instance engages in any one of the acts specified in
paragraphs (1) to (6), inclusive, of subdivision (a).
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.
