BILL NUMBER: SB 601	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 6, 2014

INTRODUCED BY   Senator Yee

                        FEBRUARY 22, 2013

   An act to  add and repeal Section 19803.5 of 
 amend Sections 19817 and 19840 of, and to repeal Section 19818
of,  the Business and Professions Code, relating to gaming.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 601, as amended, Yee. Gambling  activities and
establishments.   policy. 
   The Gambling Control Act provides for the licensure and regulation
of various legalized gambling activities and establishments by the
California Gambling Control Commission and the investigation and
enforcement of those activities and establishments by the Department
of Justice.  Existing law declares the intent of the
Legislature in enacting the act, to provide uniform, minimum
standards of regulation of permissible gambling activities and the
operation of lawful gambling establishments.  
   This bill would require the Legislative Analyst to conduct an
economic study to be submitted to the Legislature no later than
December 1, 2014, analyzing the economic impact of all California
laws and regulations on gambling establishments and the state's
economy, as specified. The bill would authorize the Legislative
Analyst to submit a claim to the Controller for its expenses
associated with the study, to be paid from the Gambling Control Fund
upon appropriation of the Legislature.  
   Existing law requires the commission to establish and appoint a
Gaming Policy Advisory Committee of 10 members. Existing law requires
the committee to be composed of representatives of controlled
gambling licensees and members of the general public in equal
numbers. Existing law requires the committee to be convened to
discuss matters of controlled gambling regulatory policy and any
other relevant gambling-related issue.  
   This bill would instead provide that the commission shall appoint
5 representatives of controlled gambling licensees and 5 members of
the general public to the committee. The bill would also provide that
the Senate Committee on Rules and the Speaker of the Assembly shall
each appoint one additional person employed by the Legislature to
serve as ex officio members of the committee. The bill would include,
among the issues that may be discussed by the committee, the extent
to which the regulation of permitted games, game procedures, and
gambling expansion impedes the economic growth of the gambling sector
in California, the impact of those regulations on state and local
tax and fee proceeds, and the impact of new technologies on gambling.
 
   Existing law requires the commission to investigate the
consequences, benefits, and disadvantages of imposing a state tax on
revenue generated by gambling establishments and the regulation of
advertising for the purpose of limiting exposure of children to
materials promoting gambling. Existing law requires the commission to
report its findings on these matters to the Legislature and the
Governor, as specified.  
   This bill would repeal these provisions.  
   Existing law authorizes the commission to adopt regulations for
the administration and enforcement of the act. Existing law requires
that, to the extent appropriate, regulations of the commission and
the department take into consideration the operational differences of
large and small establishments.  
   This bill would additionally require the consideration of any
fiscal and economic impact that may result from these provisions.

   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.  The Legislature finds and declares all of the
following: 
   (1) 
    (a)  Many states are currently examining their laws
governing gambling and, as a result of that examination, are
expanding gambling in their states to compete with other states that
permit more expansive gambling and a greater variety of legalized
games. 
   (2) 
    (b)  California gambling establishments and tribes
compete with gambling establishments in many states for gambling
revenues. This competition has an economic impact beyond gambling,
including, but not limited to, reduced revenues from tourism and
entertainment and state and local tax proceeds. 
   (3) 
    (c)  Laws and regulations governing gambling
establishments and permitted games, including, but not limited to,
the Gambling Control Act and the Penal Code, the regulations adopted
pursuant to those laws, and the enforcement of those laws and
regulations by the California Gambling Control Commission, the
Department of Justice, and local governments, have an impact on
California's potential to compete for additional revenues and tax
proceeds.
   SEC. 2.    Section 19817 of the   Business
and Professions Code   is amended to read: 
   19817.   (a)    The commission shall establish
 and appoint  a Gaming Policy Advisory Committee
 of 10 members  . The  committee shall be
composed of   commission shall appoint five 
representatives of controlled gambling licensees and  five 
members of the general public  in equal numbers 
   to the committee  .  The Senate Committee on
Rules and the Speaker of the Assembly shall each appoint one
additional person employed by the Legislature to serve as ex officio
members of the committee.   The 
    (b)     The  executive director shall,
from time to time, convene the committee for the purpose of
discussing matters of controlled gambling regulatory policy and any
other relevant gambling-related  issue. The  
issues, including, but not limited to, the following:  
   (1) The extent to which the regulation of permitted games, game
procedures, and gambling expansion impedes the economic growth of the
gambling sector in California.  
   (2) The impact of the regulation described in paragraph (1) on
state and local tax and fee proceeds.  
   (3) The impact of new technologies on gambling. 
    (c)     The  recommendations
concerning gambling policy made by the committee shall be presented
to the commission, but shall be deemed advisory and not binding on
the commission in the performance of its duties or functions. The
committee  may   shall  not advise the
commission on Indian gaming. 
  SEC. 2.    Section 19803.5 is added to the
Business and Professions Code, to read:
   19803.5.  (a) The Legislative Analyst shall conduct an economic
study to be submitted to the Legislature no later than December 1,
2014, analyzing the economic impact of all California laws and
regulations on gambling establishments and the state's economy. At a
minimum, the study shall examine the extent to which the regulation
of permitted games and games procedures and the regulation of the
expansion of gaming impedes economic growth in this sector of the
California economy and state and local tax and fee proceeds. Upon
submission of this study to the Legislature, the Legislative Analyst
may submit a claim to the Controller for its expenses associated with
the study. The Controller may pay those expenses from the Gambling
Control Fund upon appropriation by the Legislature.
   (b) A report to be submitted pursuant to this section shall be
submitted in compliance with Section 9795 of the Government Code.
   (c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on December 31, 2015. 
   SEC. 3.    Section 19818 of the   Business
and Professions Code   is repealed.  
   19818.  (a) The commission shall investigate the following
matters:
   (1) The consequences, benefits, and disadvantages of imposing a
state tax on revenue generated by licensed gambling establishments.
   (2) Regulation of advertising for the purpose of limiting exposure
of children to materials promoting gambling.
   (b) The commission shall report its findings to the Legislature
and the Governor no later than January 1, 2005. 
   SEC. 4.    Section 19840 of the   Business
and Professions Code  is amended to read: 
   19840.  The commission may adopt regulations for the
administration and enforcement of this chapter. To the extent
appropriate, regulations of the commission and the department shall
take into consideration the operational differences of large and
small establishments  and any fiscal and economic impact that may
result  .