Gambling-Related Legislation Chaptered in 2006

AB 839 (Torrico), Chapter 707, Statutes of 2006, allows nonprofit organizations to conduct casino-night fundraisers using controlled games and donated non-cash prizes to further the purposes and mission of the nonprofit organization. Nonprofit organizations are required to have been in existence for 3 years and must register with the Division of Gambling Control within the Department of Justice prior to holding the fundraiser. Each nonprofit (or local chapter of a statewide nonprofit organization) is limited to one casino night fundraiser per year. For further information, including how to register for a fundraiser and specific rules for conducting a fundraiser, please contact the Division of Gambling Control. This bill becomes effective on January 1, 2007.

AB 1620 (Klehs), Chapter 721, Statutes of 2006, increases annual table fees paid by gambling establishments (cardrooms) into the Gambling Control Fund, pursuant to a sliding scale based on the number of gaming tables or gross revenues, whichever is higher. This bill becomes effective on January 1, 2007.

AB 1973 (Bermudez), Chapter 854, Statutes of 2006, defines “hours of operation” as the period during which a gambling establishment (cardroom) is open within a 24-hour period, and changes the requirements for individuals eligible for appointment to the Commission. The bill also requires each gambling establishment to pay an additional $100 for each table to the Department of Drug and Alcohol Programs for deposit in the Gambling Addiction Program Fund, to benefit those who have a gambling addiction problem. In addition, the bill extends the moratorium on gambling expansion from January 1, 2010 to January 1, 2015. This bill becomes effective on January 1, 2007.

AB 3068 (Horton), Chapter 868, Statutes of 2006, authorizes the Commission to exempt specified limited partners in limited partnerships from the gambling establishment (cardroom) licensure requirements under the Gambling Control Act. The exemption is available only to a cardroom located on the grounds of a racetrack, as specified. This bill becomes effective on January 1, 2007.

SB 288 (Battin), Chapter 13, Statues of 2006, appropriates an additional $20 million from the Indian Gaming Special Distribution Fund in FY 2005-06 for grants for local government agencies to mitigate the impacts of tribal gaming. The bill requires counties to provide more extensive mandated reports to the Legislature on the use of these grant funds, changes the due date of these annual reports to October 1 of each year and requires the reports to be submitted to additional Legislative and State entities. This bill became effective on March 28, 2006.

SB 470 (Ducheny), Chapter 527, Statutes of 2006, ratifies the amendment of a tribal-state gaming compact entered into on June 26, 2006, between the State of California and the Quechan Tribe of the Fort Yuma Indian Reservation. This bill becomes effective on January 1, 2007.

SB 1198 (Florez), Chapter 181, Statutes of 2006, allows local jurisdictions that permit legalized gambling in gambling establishments (cardrooms) to authorize “no limit” wagers in their local gambling ordinances. Specifically, the bill removes wagering limits from the definition of “expansion of gambling” in the Gambling Control Act and exempts wagering limits from the moratorium on gambling expansion. The bill also removes the requirement that increases in wagering limits be approved by local voters. This bill also applies the definition of “expansion of gambling” included in Business and Professions Code §19961 to the entire Gambling Control Act. This bill becomes effective on January 1, 2007.