Bill Text: CA SB190 | 2013-2014 | Regular Session | Amended
Bill Title: Gambling: sports wagering.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB190 Detail]
Download: California-2013-SB190-Amended.html
BILL NUMBER: SB 190 AMENDED
BILL TEXT
AMENDED IN SENATE APRIL 29, 2013
AMENDED IN SENATE APRIL 4, 2013
INTRODUCED BY Senator Wright
( Coauthor: Senator Anderson
)
FEBRUARY 7, 2013
An act to add Chapter 4.7 (commencing with Section 19750) to
Division 8 of the Business and Professions Code, to add Section
12012.6 to the Government Code, and to amend Sections 336.9
and 337a of the Penal Code, relating to gambling, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 190, 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,
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 fee for deposit in the Gambling
Addiction Program Fund. The bill would require each licensed entity
to remit to the Treasurer on a monthly basis for deposit in the
General Fund, an amount equal to 7.5% of its gross revenues generated
by sports wagering activities. The bill would require the
commission, the board, and the department to adopt regulations to
implement these provisions, including authority to adopt regulations
establishing fees in a reasonable amount to recover costs incurred
performing their duties pursuant to these provisions.
The bill would require the department, among other things, to
investigate any request made by the board or the commission in
connection with an application for authorization, and to investigate
suspected 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 related to the sports wagering
activity. The bill would also prohibit a licensed entity 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
(IGRA) , 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 authorize a federally recognized Indian tribe that
is not a gambling establishment or a horse racing track, or that has
entered into a compact agreement with the state authorizing the
operation of a satellite wagering facility, to conduct sports
wagering 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 as authorized by IGRA, pursuant to the model
tribal-state sports wagering compact described below .
This bill would create a model tribal-state sports wagering
compact and would provide that, by the enactment of this measure, the
state grants a model tribal-state sports wagering compact for the
conduct of sports wagering on Indian lands to a federally recognized
California Indian tribe that exercises jurisdiction over those Indian
lands. The bill would provide for the tribe to adopt the authority
through the signature of the tribal chief executive officer, as
specified. No further action by the Governor or the state would be
required in order to conduct sports wagering, but the tribe would be
responsible for submitting a copy of the compact executed by the
tribe to the United States Secretary of the Interior for publication
of the notice of approval in the Federal Register, pursuant to IGRA.
(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.
(4) This bill would declare that it is to take effect immediately
as an urgency statute.
Vote: 2/3. 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 sports
events as authorized pursuant to this chapter:
(a) The owner or operator of a gambling establishment with a
current valid 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, including a
horse racing association, or of a satellite wagering facility,
with a current valid license
issued by the California Horse Racing Board pursuant to Chapter 4
(commencing with Section 19400). A licensed horse racing track is
authorized to conduct sports wagering pursuant to this subdivision 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 and horsewomen participating in a racing
meeting.
(c) A federally recognized Indian tribe that is not authorized
pursuant to subdivision (a) or (b), or that has entered into a
compact agreement with the state authorizing the operation of a
satellite wagering facility, may conduct sports wagering as
authorized by 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 of a gambling establishment in the state
pursuant to the model tribal-state sports wagering
compact set forth in subdivision (b) of Section 12012.6 of the
Government Code .
19752. As used in this chapter, the following definitions 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) "Indian lands" means land upon which gaming may be conducted
under 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.).
(e) "Indian tribe" means a federally recognized Indian tribe
located within the State of California.
(d)
(f) "Licensed operator" means any of the entities
listed in Section 19750 that are authorized pursuant to this chapter
to conduct sports wagering.
(e)
(g) "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 the location at which the event takes place.
(f)
(h) "Sports event" shall include any professional
sports or athletic event, and any collegiate sports or athletic
event, except a prohibited sports event.
(g)
(i) "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 a
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 and licensed horse racing tracks.
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 or
and an owner or operator of a horse racing track
or satellite wagering facility that conducts
sports wagering shall pay an annual fee of three thousand dollars
($3,000) to the State Department of Alcohol and Drug Programs for
deposit in the Gambling Addiction Program Fund.
(d) Each licensed operator shall remit to the treasurer
Treasurer on a monthly basis for deposit in the
general fund General Fund an amount
equal to 7.5 percent of its gross revenues generated by sports
wagering activities. Each monthly payment shall be due on the 10th
day of the following month. For the purposes of determining gross
revenues, the licensed operator and the treasurer
Treasurer shall use generally accepted accounting
principles.
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
or horse racing track 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. 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. 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.
19761. The tribal gaming regulatory authority for each Indian
tribe conducting sports wagering pursuant to a model tribal-state
sports wagering compact shall promulgate regulations for the
administration of sports wagering. The regulations shall be
consistent with the terms of the model tribal-state sports wagering
compact set forth in subdivision (b) of Section 12012.6 of the
Government Code.
19762. The sports wagering authorized pursuant to this chapter
may be conducted only at the gambling establishment or horse
racing track 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 regulate other legal gambling in this state, including the
ability to audit the books and records of a licensed operator related
to the sports wagering activity.
SEC. 2. Section 12012.6 is added to the
Government Code , to read:
12012.6. (a) The Governor of California, authorized by the
Constitution of the State of California with the power to negotiate
the terms of a compact between the state and a federally recognized
Indian tribe, and by the enactment of the act adding this section,
and the concurrence of the State Legislature through the passage of
the act adding this section, hereby grants the following model
tribal-state sports wagering compact for the conduct of sports
wagering on Indian lands, as defined by the federal Indian Gaming
Regulatory Act of 1988 (IGRA), to a federally recognized California
Indian tribe that exercises jurisdiction over those Indian lands,
which, if adopted, constitutes a tribal-state gaming compact pursuant
to IGRA that is limited to sports wagering. Adoption of the
authority granted by this section shall occur upon the signature of
the chief executive officer of the tribal government whose authority
to enter into the compact shall be set forth in an accompanying
tribal law or ordinance or resolution by the governing body of the
tribe, a copy of which shall be provided by the tribe to the
Governor. No further action by the Governor or the state is required
before the compact becomes effective. A tribe adopting this model
tribal-state sports wagering compact is responsible for submitting a
copy of the compact executed by the tribe to the Secretary of the
Interior for publication of the notice of approval in the Federal
Register, pursuant to IGRA. The tribe shall provide a copy of the
executed compact to the Governor. A tribe shall not be required to
agree to terms different than the terms set forth in the model
tribal-state sports wagering compact, which is set forth below. As a
result of the enactment of this section, the operation and regulation
of sports wagering is lawful when conducted pursuant to a compact
that has become effective.
(b) The language of the model tribal-state sports wagering compact
is as follows:
MODEL SPORTS WAGERING COMPACT BETWEEN THE NAME OF TRIBE] AND
THE STATE OF CALIFORNIA
This compact is made and entered into by and between the Name of
Tribe], a federally recognized Indian tribe (tribe), and the State of
California (state), with respect to the operation and regulation of
sports wagering on the tribe's Indian lands as defined in the Indian
Gaming Regulatory Act, 25 U.S.C. Sec. 2703(4).
PART 1. TITLE
This document shall be referred to as the "Sports Wagering Compact
between the Name of Tribe] and State of California."
PART 2. RECITALS
a. This Tribal-State Sports Wagering Compact is entered into on a
government-to-government basis by and between the Name of Tribe], a
federally recognized sovereign Indian tribe, and the State of
California, a sovereign State of the United States, pursuant to the
Indian Gaming Regulatory Act of 1988 (codified at 18 U.S.C. Sec. 1166
et seq., and 25 U.S.C. Sec. 2701 et seq.; hereafter IGRA), and any
successor statute or amendments.
b. The tribe and the state hereby agree that sports wagering is a
form of class III gaming that may be lawfully operated and regulated
on Indian lands within the state as provided herein, as a means of
generating revenues for specific purposes as authorized by the IGRA.
PART 3. DEFINITIONS
As used in this compact:
a. "Board" means the California Horse Racing Board.
b. "Class III gaming" means the forms of class III gaming defined
in Section 2703(8) of Title 25 of the United State Code and by
regulations of the National Indian Gaming Commission.
c. "Commission" means the California Gambling Control Commission.
d. "Compact" means this Tribal-State Sports Wagering Compact
between the state and the tribe.
e. "Effective date" means the date on which the secretary
publishes notice of approval in the Federal Register.
f. "Facility" means any building located on the Indian lands of
the tribe in which sports wagering authorized by this compact is
conducted.
g. "Licensed operator" means a tribal entity licensed by the tribe
to conduct sports wagering.
h. "NIGC" means the National Indian Gaming Commission.
i. "Patron" means any person who is on the premises of a facility,
for the purpose of engaging in sports wagering authorized by this
compact.
j. "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.
k. "Rules and regulations" means the rules and regulations
promulgated by the Tribal Gaming Regulatory Authority for
implementation of this compact.
l. "Sports event" shall include any professional sports or
athletic event, and any collegiate sports or athletic event, except a
prohibited sports event.
m. "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.
n. "Secretary" means the United States Secretary of the Interior,
or the secretary's designee delegated with the authority to approve
and publish notice of approval in the Federal Register.
o. "Tribal Gaming Regulatory Agency" (TGRA) means the tribal
governmental agency that has the authority to carry out the tribe's
regulatory and oversight responsibilities under this compact.
PART 4. AUTHORIZATION OF SPORTS WAGERING
a. The tribe and the state agree that the tribe is authorized to
accept and regulate sports wagers on any sports event that is not
prohibited by California law, in accordance with this compact and the
IGRA. However, nothing in this compact shall limit or alter the
tribe's right to operate any game that is: (1) class I or class II
under IGRA or (2) any other class III game that is authorized under a
separate tribal-state compact or procedures issued by the secretary.
b. Sports wagering authorized pursuant to this compact shall only
be conducted at a facility located on Indian lands consistent with
the provisions of the IGRA.
PART 5. LICENSING
a. A person shall not be employed at a facility unless that person
is licensed by the TGRA in accordance with this compact. Persons who
must be licensed by the TGRA under this compact include, but are not
limited to, all persons in any way connected with the sports
wagering operation or facility who are required to be licensed or to
submit to a background investigation under the IGRA, all employees
and suppliers of the facility, and any other person who interacts
with the tribes' sports wagering activity that the TGRA determines
should be licensed.
b. In addition to the provisions of this compact that are
applicable to the licensing of all sports wagering employees, the
requirements of Part 556 of Title 25 of the Code of Federal
Regulations, Background Investigations for Primary Management
Officials and Key Employees, and Part 558 of Title 25 of the Code of
Federal Regulations, Gaming Licenses for Key Employees and Primary
Management Officials, apply to key employees and primary management
officials of the facility.
c. Licenses shall be issued for an initial period to be determined
by the TGRA, after which they may be renewed following review and
update of the information upon which the license was based, provided,
the TGRA may extend the period for which the license is valid for a
reasonable time pending the outcome of any investigation being
conducted in connection with the renewal of that license.
d. The licensing application process shall require the TGRA to
obtain sufficient information and identification from the applicant
to permit a background investigation to determine if a license should
be issued. If the tribe conducts other forms of class II or class
III gaming under another compact, licensing activities related to the
tribe's sports wagering operations may be conducted under the tribal
licensing regulations promulgated to address background
investigations and licenses for existing class II or class III gaming
activities as required pursuant to IGRA.
e. Pursuant to Part 533 of Title 25 of the Code of Federal
Regulations, all sports wagering management contracts must be
approved by the Chair of the National Indian Gaming Commission.
PART 6. RULES AND REGULATIONS AND MINIMUM REQUIREMENTS FOR
OPERATIONS
a. At all times after the effective date of this compact, the
tribe shall be responsible for all duties which are assigned to it,
the facility, and the TGRA under this compact.
b. All sports wagering activities conducted under this compact
shall, at a minimum, comply with a gaming ordinance duly adopted by
the tribe and approved in accordance with IGRA, and with all rules,
regulations, procedures, specifications, and standards duly adopted
by the TGRA.
c. The tribe shall promulgate any rules and regulations necessary
to implement this compact so that it may operate and regulate a
facility.
d. This compact does not affect the tribe's right to amend its
rules and regulations, provided that any amendment shall be in
conformity with this compact. The board or commission may propose
additional rules and regulations related to implementation of this
compact to the TGRA at any time, and the TGRA shall give good faith
consideration to those suggestions and shall notify the board or
commission of its response or action with respect thereto.
e. All tribal facilities shall comply with procedures set forth in
this compact, and shall be operated in accordance with the
requirements set forth in this compact. In addition, all facilities
shall comply with tribal internal control standards that provide a
level of control that equals or exceeds those set forth in the
National Indian Gaming Commission's Minimum Internal Control
Standards, Part 542 of Title 25 of the Code of Federal Regulations.
f. The TGRA shall promulgate regulations related to sports
wagering and sports wagering equipment, which shall include, but are
not limited to, 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.
4. The extension of credit.
5. The cashing, deposit, and redemption of checks or other
negotiable instruments.
6. The amount of cash reserves to be maintained to cover winning
wagers.
7. The provision of reliable records, accounts, and reports of
transactions, operations, and events, the method of accounting to be
used, and the types of records required to be maintained.
g. The tribal sports wagering regulations shall prohibit a
tribally licensed facility from each of the following:
1. Accepting a wager on a sports event from any person who is not
physically present at the facility at which the wagering is
conducted.
2. Accepting a wager from a person who is under 21 years of age.
3. Admitting into the facility, or accepting wagers from, any
person whose name appears on the self-exclusion list maintained by
the facility, the TGRA, or the board or commission.
h. Net revenues that the tribe receives from sports wagering shall
be used solely for one or more of those purposes permitted under
IGRA.
i. The TGRA shall ensure that an annual independent financial
audit of the facility's conduct of sports wagering activities subject
to this compact is secured consistent with the requirements of
Section 571.12 of Title 25 of the Code of Federal Regulations, Audit
Standards. The audit shall, at a minimum, examine revenues and
expenses in connection with the conduct of sports wagering in
accordance with generally accepted auditing standards and shall
include, but not be limited to, those matters necessary to verify the
determination of adjusted gross revenues.
j. The tribe and TGRA shall be responsible for regulating
activities pursuant to this compact. As part of its responsibilities,
the tribe shall require the facility to do all of the following:
1. Operate the conduct of sports wagering activities in compliance
with this compact, and the tribe's rules and regulations.
2. Take reasonable measures to assure the physical safety of
facility patrons and personnel and prevent illegal activity at the
facility.
3. Promptly notify appropriate law enforcement authorities of
persons who may be involved in illegal acts in accordance with
applicable law.
4. Assure that the construction and maintenance of the facility
meets or exceeds federal and tribal standards for comparable
buildings.
5. Prepare adequate emergency access plans to ensure the health
and safety of all sports wagering patrons. Upon the
finalization of emergency access plans,
the TGRA or facility shall forward copies of the plans to the board
and the commission.
k. Exclusion. The tribe's rules and regulations shall require the
facility, at a minimum, to exclude persons based on their prior
conduct at the facility or who, because of their criminal history or
association with criminal offenders, pose a threat to the integrity
of the conduct of sports wagering. The TGRA shall establish a list of
the persons excluded from the facility, even if self-excluded, and
employ its best efforts to exclude persons on the list from entry
into its facility, provided, neither persons who are barred but gain
access to the facility, nor any other person, shall have any claim
against the state, the tribe or the facility, or any other person for
failing to enforce that bar or exclusion.
l. Any patron who believes he or she may be placing sports wagers
on a compulsive basis may request that his or her name be placed on
the exclusion list. All sports wagering employees shall receive
training on identifying players who have a problem with compulsive
playing and shall be instructed to ask them to leave. Signs and other
materials shall be readily available to direct compulsive players to
agencies where they may receive counseling.
m. The tribe agrees to make an annual contribution to the State
Department of Alcohol and Drug Programs for deposit in the Gambling
Addiction Program Fund, in an amount not to exceed the amount
required from any other owner or operator in the state.
PART 7. RULES AND ODDS MAKING FOR SPORTS WAGERING
a. The tribally licensed operator shall establish the odds it will
pay on wagers placed on sporting events.
b. Summaries of the rules for making a wager on a sporting event
shall be visibly displayed in the facility. Complete sets of rules
shall be available in pamphlet form in the facility.
c. No wagers of any type shall be accepted from a person who is
less than 21 years of age.
PART 8. PRIZE CLAIMS
a. All patron disputes involving sports wagering gaming shall be
resolved in accordance with the procedures established in the tribe's
NIGC-approved gaming ordinance.
b. Notices explaining the procedure and time limitations with
respect to making prize claims shall be prominently posted in the
facility.
PART 9. ENFORCEMENT OF COMPACT
a. The TGRA may summarily suspend the license of any person or
entity if it determines that the continued licensing of the person or
entity could constitute a threat to the public health or safety or
may violate the TGRA's licensing or other standards. Any right to
notice or hearing in regard thereto shall be governed by tribal law.
b. It is the responsibility of the TGRA to conduct on-site gaming
regulation in order to enforce the terms of this compact, IGRA, and
the tribal ordinance with respect to the operation and regulation of
the facility, and to protect the integrity of the sports wagering
activities, the reputation of the tribe, and the confidence of
patrons that sports wagering in a tribal facility in California meets
the highest standards of regulation and internal controls. To meet
those responsibilities, the TGRA shall adopt and enforce regulations,
procedures, and practices as set forth herein.
c. The TGRA shall investigate any reported violation of this
compact and shall require the facility to correct the violation upon
those terms and conditions as the TGRA determines are necessary. The
TGRA shall be empowered by tribal law to impose fines or other
sanctions within the jurisdiction of the tribe against sports
wagering licensees or other persons who interfere with or violate the
tribe's regulatory requirements and obligations under IGRA, tribal
law, or this compact. The TGRA shall report significant or continued
violations of this compact and failures to comply with its orders, to
the board and commission.
d. The tribe may request the assistance of the board and
commission whenever it reasonably appears that assistance may be
necessary to carry out the purposes described herein, or otherwise to
protect public health, safety, or welfare. If requested by the tribe
or TGRA, the board and commission shall provide requested services
to ensure proper compliance with this compact. The state shall be
reimbursed for its actual and reasonable costs of that assistance as
mutually agreed upon.
e. Notwithstanding that the tribe has the primary responsibility
to administer and enforce the regulatory requirements of this
compact, the board and commission shall have the right to inspect the
tribe's facility with respect to sports wagering activities subject
to the following conditions:
1. The TGRA, board, and commission shall confer and agree upon
protocols for inspection of public areas and non-public areas of the
facility, inspection of documents and records, and terms for release
of tribal information to other law enforcement agencies.
2. Records received by the board and commission from the tribe in
compliance with this compact, or information compiled by the board
and commission from those records, shall be exempt from disclosure
under the California Public Records Act.
PART 10. JURISDICTION
This compact shall not alter tribal, federal, or state civil
adjudicatory or criminal jurisdiction.
PART 11. FEES
a. No reimbursement is required, unless mutually agreed upon, by
this compact, other than funds distributed to the state for the
purpose of addressing gambling addiction. The tribe is not required
to engage in any type of revenue sharing with the state pursuant to
this compact because the state is not providing the tribe with any
form of exclusivity as to sports wagering.
b. This compact does not authorize the state to impose any tax,
fee, charge or assessment upon the tribe or the sports wagering
activity.
PART 12. DISPUTE RESOLUTION
a. In recognition of the government-to-government relationship
between the tribe and the state, the parties shall make their best
efforts to resolve disputes that occur under this compact by good
faith negotiations whenever possible. Therefore, without prejudice to
the right of either party to seek injunctive relief against the
other when circumstances are deemed to require immediate relief, the
parties hereby establish a threshold requirement that disputes
between the tribe and the state first be subjected to a process of
meeting and conferring in good faith in order to foster a spirit of
cooperation and efficiency in the administration and monitoring of
performance and compliance by each other with the terms, provisions,
and conditions of this compact, as follows:
1. Either party shall give the other, as soon as possible after
the event giving rise to the concern, a written notice setting forth,
with specificity, the issues to be resolved.
2. The parties shall meet and confer in a good faith attempt to
resolve the dispute through negotiation not later than 10 calendar
days after receipt of the notice, unless both parties agree in
writing to an extension of time.
3. If the dispute is not resolved to the satisfaction of the
parties within 30 calendar days after the first meeting, then either
party may call for mediation under the Commercial Mediation
Procedures of the American Arbitration Association (AAA) or any
successor procedures, provided that the mediation does not last more
than 60 calendar days, unless an extension to this time limit is
negotiated by the parties. The disputes available for resolution
through mediation are limited to matters arising under the terms of
this compact. If the parties are unable to resolve a dispute through
the process specified in this part, notwithstanding any other
provision of law, either party may bring an action in a United States
District Court (federal court) having venue regarding any dispute
arising under this compact. If the federal court declines to exercise
jurisdiction, or federal precedent exists that holds that the
federal court would not have jurisdiction over the dispute, either
party may bring the action in the appropriate court of the State of
California. The parties shall be entitled to all rights of appeal
permitted by law in the court system in which the action is brought.
4. If the parties are unable to resolve a dispute through the
process specified in this part, notwithstanding any other provision
of law, either party may bring an action in a United States District
Court (federal court) having venue regarding any dispute arising
under this compact. If the federal court declines to exercise
jurisdiction, or federal precedent exists that holds that the federal
court would not have jurisdiction over the dispute, either party may
bring the action in the appropriate court of the State of
California. The parties are entitled to all rights of appeal
permitted by law in the court system in which the action is brought.
b. This part shall not be construed to waive, limit, or restrict
any remedy that is otherwise available to either party, and shall not
be construed to preclude, limit, or restrict the ability of the
parties to pursue, by mutual agreement, any other method of dispute
resolution, including, but not limited to, mediation or utilization
of a technical advisor to the TGRA and the board and commission,
provided that neither party is under any obligation to agree to an
alternative method of dispute resolution.
PART 13. LIMITED WAIVER OF SOVEREIGN IMMUNITY
a. For purposes of actions based on disputes between the state and
the tribe that arise under this compact and the enforcement of any
judgment resulting therefrom, the tribe and the state each expressly
waives its right to assert sovereign immunity from suit and from
enforcement of any ensuing judgment, and further consents to be sued
in federal or state court, including the rights of appeal specified
above, as the case may be, provided that:
1. The dispute is limited solely to issues arising under this
compact.
2. Neither side makes any claim for monetary damages. Only
injunctive, specific performance, including enforcement of a
provision of this compact requiring payment of money to one or
another of the parties, or declaratory relief is sought.
3. No person or entity other than the tribe and the state is party
to the action, unless failure to join a third party would deprive
the court of jurisdiction, provided that nothing herein shall be
construed to constitute a waiver of the sovereign immunity of either
the tribe or the state in respect to any third party.
b. In the event of intervention by any additional party into any
action without the consent of the tribe and the state, the waivers of
either the tribe or the state provided for herein may be revoked,
unless joinder is required to preserve the court's jurisdiction,
provided that nothing herein shall be construed to constitute a
waiver of the sovereign immunity of either the tribe or the state in
respect to any third party.
c. Except as stated herein or elsewhere in this compact, no other
waivers or consents to be sued, either express or implied, are
granted by either party.
PART 14. TERM OF COMPACT AND TERMINATION
a. Once effective, this compact shall continue in full force and
effect for state law purposes until the parties mutually agree to
terminate the compact.
b. Once effective, this compact shall constitute a binding and
determinative agreement between the tribe and the state.
PART 15. AMENDMENTS AND RENEGOTIATIONS
a. The terms and conditions of this compact may be amended at any
time by the mutual and written agreement of both parties.
b. All requests to amend or renegotiate this compact shall be in
writing, addressed to the Tribal Chairperson or the Governor, as the
case may be, and shall include the activities or circumstances to be
negotiated, together with a statement of the basis supporting the
request. If the request meets the requirements of this section, the
parties shall confer promptly and determine a schedule for commencing
negotiations within 30 calendar days of the request. All matters
involving negotiations or other amendatory processes shall be
governed, controlled, and conducted in conformity with the provisions
and requirements of IGRA, including those provisions regarding the
obligation of the state to negotiate in good faith and the
enforcement of that obligation in federal court. The Chairperson of
the tribe and the Governor are hereby authorized to designate the
person or agency responsible for conducting the negotiations, and
shall execute any documents necessary to do so.
PART 16. NOTICES
Unless otherwise indicated by this compact, all notices required
or authorized to be served shall be served by first-class mail at the
following addresses:
Governor
State Capitol
Sacramento, CA
95814
Tribal Chairperson
ADDRESS]
PART 17. CHANGES IN IGRA
This compact is intended to meet the requirements of IGRA as it
reads on the effective date of this compact, and when reference is
made to the Indian Gaming Regulatory Act or to an implementing
regulation thereof, the referenced provision is deemed to have been
incorporated into this compact as if set out in full. Subsequent
changes to IGRA that diminish the rights of the state or the tribe
may not be applied retroactively to alter the terms of this compact,
except to the extent that federal law validly mandates that
retroactive application without the state's or the tribe's respective
consent.
PART 18. MISCELLANEOUS
a. Except to the extent expressly provided under this compact,
this compact is not intended to, and shall not be construed to,
create any right on the part of a third party to bring an action to
enforce any of its terms.
b. This compact, together with all addenda and approved
amendments, sets forth the full and complete agreement of the parties
and supersedes any prior agreements or understandings with respect
to the subject matter hereof. This compact does not alter or amend
any pre-existing compact between the tribe and the state.
c. Neither the presence in another tribal-state compact of
language that is not included in this compact, nor the absence in
this compact of language that is present in another tribal-state
compact shall be a factor in construing the terms of this compact.
d. If, after the effective date of this compact, the state enters
into a compact with any other tribe that contains more favorable
provisions with respect to any provisions of this compact, the state
shall, at the tribe's request, enter into the preferred compact with
the tribe as a superseding substitute for this compact.
PART 19. REPRESENTATIONS
a. By entering into this compact, the tribe expressly represents
that, as of the date of the tribe's execution of this compact:
1. The undersigned has the authority to execute this compact on
behalf of his or her tribe.
2. The tribe is recognized as eligible by the Secretary of the
Interior for special programs and services provided by the United
States to Indians because of their status as Indians, and is
recognized by the Secretary of the Interior as possessing powers of
self-government.
b. In entering into this compact, the state expressly relies upon
the foregoing representations by the tribe, and the state's entry
into the compact is expressly made contingent upon the truth of those
representations as of the date of the tribe's execution of this
compact.
PART 20. AUTHORITY TO EXECUTE
This compact is deemed approved by the State of California. No
further action by the state or any state official is necessary for
this compact to take effect upon approval by the Secretary of the
Interior and publication in the Federal Register.
The undersigned tribal official(s) represents that he or she is
duly authorized and has the authority to execute this compact on
behalf of the tribe for whom he or she is signing.
APPROVED:
Name of Tribe]
____________________________ Date _________________
CHIEF EXECUTIVE OFFICER]
SEC. 2. SEC. 3. 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
via the Internet.
(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. 3. SEC. 4. 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, or 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, or 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, or 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).
(f) This section does not apply to sports wagering facilities on
Indian lands that are governed by the terms of the model sports
wagering compact set forth in subdivision (b) of Section 12012.6 of
the Government Code.
SEC. 4. 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.
SEC. 5. SEC. 6. This act is an
urgency statute necessary for the immediate preservation of the
public peace, health, or safety within the meaning of Article IV of
the Constitution and shall go into immediate effect. The facts
constituting the necessity are:
In order to protect the liberty interests of Californians, to
ensure that the state realizes significant revenues from this
popular, pervasive, and legitimate activity, and to ensure that
suitable and qualified persons operate sports betting venues, it is
necessary that this act take effect immediately.
