Gambling-Related Legislation Chaptered in 2008

Bingo

AB 334 (Levine, Chapter 734, Statutes of 2008) - Remote caller bingo

Existing law permits cities, counties, and cities and counties to allow bingo games to be conducted by specified organizations for charitable purposes. Existing law also provides for the licensure and regulation of gambling establishments, as defined, by the California Gambling Control Commission. This bill appropriates up to $500,000, as determined by order of the Director of Finance, to the Commission for use in the 2008-09 fiscal year for purposes relating to the regulation of remote caller bingo, as specified. The bill contains other related provisions.
Effective date: January 1, 2008.

AB 1924 (Jeffries, Chapter 216, Statutes of 2008) - Charitable bingo: overhead

With respect to bingo games that are conducted by the Lake Elsinore Elks Lodge, this bill changes the amount of bingo proceeds that may be used for rental and overhead as described above to 20% of the proceeds before the deduction for prizes, or $3,000 per month, whichever is less (was previously 20% or $2,000 per month, whichever is less). The bill requires the proceeds to be used only for the purpose of financing the rebuilding of the facility and replacing equipment that was destroyed by fire in 2007. AB 1924 sunsets in 2019, or until the cost of rebuilding the facility is repaid, whichever comes first. Note: The language in this bill was also included within SB 1369 (Cedillo, Chapter 748, Statutes of 2008).
Effective date: January 1, 2009.

SB 1369 (Cedillo, Chapter Number 748, Statutes of 2008) - Remote caller bingo

SB 1369 authorizes remote caller bingo as a game that would allow specific nonprofit organizations to use audio or video technology to remotely link designated in-state facilities to cosponsor live bingo games, if authorized pursuant to a local ordinance and approved by the California Gambling Control Commission (Commission). The bill requires the Commission to regulate remote caller bingo, including but not limited to, licensure, operation and the development of regulations. The Department of Justice would conduct background investigations and field enforcement. Other significant provisions of the bill are as follows: (1) Requires remote caller bingo to be played using traditional paper or other tangible bingo cards and daubers and prohibits specified electronic devices; (2) Authorizes awarded prizes up to 37% of gross game receipts and requires expenses and proceeds of the game to be allocated among the participating organizations; (3) Provides for a $5 million loan from interest in the Indian Gaming Special Distribution Fund to the Charity Bingo Mitigation Fund, to be appropriated to the Commission for mitigation grants provided to eligible non-profit organizations that used electronic gaming devices pursuant to a local ordinance, as specified; and, (4) Provides for a loan of up to $500,000 from the Gambling Control Fund to the California Bingo Fund on or after January 1, 2009, for startup costs incurred by the Commission. Existing law permits cities, counties, and cities and counties to allow bingo games to be conducted by specified organizations for charitable purposes, subject to provisions of law which, if violated, constitute a crime. Existing law defines bingo for the purposes of these provisions as a game of chance in which prizes are awarded on the basis of designated numbers or symbols on a card that conform to numbers or symbols that are selected at random. This bill permits cities, counties, and cities and counties to allow bingo games to be conducted by charitable organizations affiliated with a school district for charitable purposes. The bill modifies the definition of bingo to mean a game of chance in which prizes are awarded on the basis of designated numbers or symbols that are marked or covered by the player on a tangible card in the player's possession and that conform to numbers or symbols, selected at random and announced by a live caller. The bill prohibits the use of electronic devices, except card-minding devices, as specified, and would also increase the allowable value of prizes for a bingo game to $500. By changing the definition of a crime, this bill imposes a state-mandated local program. The bill contains other related provisions.
Effective date: January 1, 2009.

Budget

AB 88 (Committee on Budget, Chapter 269, Statutes of 2008) - Budget Act of 2008

This bill, an urgency measure, amends and supplements the Budget Act of 2008 (AB 1781, Laird, Chapter 269, Statutes of 2008). As it relates to the California Gambling Control Commission, the bill makes a non-substantive change to Provision 2 of Item 0855-111-367 that transfers funds from the Indian Gaming Special Distribution Fund to the Indian Gaming Revenue Sharing Trust Fund, by changing "State Gaming Agency" to "state gaming agency.
Effective date: September 23, 2008.

AB 1781 (Laird, Chapter 268, Statutes of 2008) - Budget Act of 2008

This bill, an urgency measure, is the Budget Act of 2008. As it relates to the California Gambling Control Commission, the bill includes appropriations of $9,740,000 from the Indian Gaming Special Distribution Fund and $3,422,000 from the Gambling Control Fund for support of the California Gambling Control Commission.
Effective date: September 23, 2008.

Cardrooms

AB 163 (Mendoza, Chapter 647, Statutes of 2008) - Gambling: local ordinances

This bill allows an expansion of gambling by authorizing local jurisdictions to amend their local gambling ordinances, without voter approval, to allow certain medium-sized cardrooms to increase the number of gambling (i.e. cardroom) tables above what is authorized under existing law. The bill authorizes local jurisdictions to allow three additional tables per cardroom if the local gambling ordinance, as of July 1, 2007, permitted between five and eight tables per cardroom, and an additional four tables if the local gambling ordinance, as of July 1, 2007, permitted between nine and twelve tables.
Effective date: January 1, 2009.

Fingerprinting

AB 2524 (Benoit, Chapter 77, Statutes of 2008) - California Gambling Control Commission: employees: fingerprints

This bill allows fingerprinting and criminal history background investigations on contractors and prospective employees within the California Gambling Control Commission.
Effective date: January 1, 2009.

Horse Racing

AB 1289 (Price, Chapter 430, Statutes of 2008) - Fairs: out-of-zone, out-of-state, and out-of-country races: harness racing: workers' compensation

This bill makes numerous changes to advance deposit wagering in California: (1) removes "multijurisdictional wagering hub located outside of the state" from the definition of ADW; (2) requires employees of ADW licensee or betting system in California to live within the state in order for betting system to be licensed; (3) requires CHRB to promulgate regulations requiring employees represented in the same or similar classifications to be employed at a ratio of one employee for every $20,000 in wagers; (4) requires a specified amount of the market access fee to be used to establish a defined contribution retirement plan for jockeys; and (5) extends the sunset on ADW until January 1, 2011.
Effective date: January 1, 2009.

AB 2048 (Silva, Chapter 439, Statutes of 2008) - Horse racing

This bill increases the claiming prize on thoroughbred racing from $5,000 to $8,000.
Effective date: January 1, 2009.

AB 2103 (Plescia, Chapter 443, Statutes of 2008) - Horse racing: thoroughbred racing: workers' compensation

This bill extends the sunset on workers' compensation provisions for thoroughbred racing associations until January 1, 2014.
Effective date: January 1, 2009.

AB 2205 (Garrick, Chapter 448, Statutes of 2008) - Horse racing: racing weeks: allocations

The Horse Racing Law generally regulates horse racing and vests the administration and enforcement of its provisions in the California Horse Racing Board. Existing law requires the board to make allocations of racing weeks as it deems appropriate and specifies the maximum number of racing weeks that may be allocated for horse racing other than at fairs, including, for thoroughbred racing, a maximum of 44 weeks per year in the northern zone, 42 weeks per year in the central zone, and 7 weeks per year in the southern zone. This bill authorizes the board, if a venue used for thoroughbred racing by an association or racing fair licensed to conduct thoroughbred racing in the central zone in 2008 is not available for racing in 2009 or thereafter, to allocate the dates formerly allocated to that venue to licensed associations or racing fairs in the southern or central zone. The bill provides that, upon allocation of dates pursuant to these provisions, no association or racing fair licensed to conduct thoroughbred racing in the southern or central zones may receive more than 25 weeks of thoroughbred racing in the combined southern and central zones. The bill prohibits the aggregate allocation of racing weeks conducted in the southern and central zones from exceeding the total aggregate racing weeks permitted to be run in those zones, as specified.
Effective date: January 1, 2009.

AB 2258 (Evans, Chapter 453, Statutes of 2008) - Horse racing: license fees: shortfalls: pro rata assessment

Existing law, the Horse Racing Law, provides that if the total amount paid to the state by racing associations and fairs is less than $40,000,000 in any calendar year, all associations and fairs that conducted live racing during the year of the shortfall are required to remit certain amounts, on a pro rata basis according to the amount handled in-state by each association or fair, in order to attain that $40,000,000 total. This bill specifies instead that if the total amount paid to the state as license fees by racing associations and fairs is less than $40,000,000 in any calendar year, all associations and fairs that conducted live racing during the year of the shortfall shall remit to the state, on a pro rata basis according to the amount paid as license fees by each association or fair, the amount necessary to bring the total amount paid to the state as license fees to $40,000,000. This bill contains other related provisions.
Effective date: January 1, 2009.

AB 3073 (Committee on Governmental Organization, Chapter 509, Statutes of 2008) - Horse racing

Existing law provides that the jurisdiction and supervision over meetings in this state where horse races with wagering on their results are held or conducted, and over all persons or things having to do with the operation of such meetings, is vested in the California Horse Racing Board. This bill requires California-sired horses to be included within the special races designated for California-bred horses, as specified. The bill defines a "California-sired horse" for that purpose. The bill contains other related provisions and other existing laws.
Effective date: January 1, 2009.

AB 3074 (Committee on Governmental Organization, Chapter 510, Statutes of 2008) - Horse racing

Existing law provides that the California Horse Racing Board may authorize a California harness racing association conducting a live racing meeting to accept wagers on the full card of races conducted by another racing association on the day that other association conducts the Breeder's Crown Stakes, the Meadowlands Pace, the Hambletonian, or the North American Cup. This bill authorizes the board to permit a California harness racing association conducting a live racing meeting to accept wagers on the full card of races conducted by another racing association on the day that other association conducts the Kentucky Futurity. This bill contains other related provisions and other existing laws.
Effective date: January 1, 2009.

SB 561 (Margett, Chapter 380, Statutes of 2008) - Horse racing: racing days

Existing law limits an association licensed to conduct thoroughbred racing in the northern zone to 22 weeks of that racing. This bill instead allows an association licensed to conduct thoroughbred racing in the northern zone up to 35 weeks of that racing. This bill contains other related provisions and other existing laws.
Effective date: January 1, 2009.

Sweepstakes

SB 1400 (Simitian, Chapter 749, Statutes of 2008) - Sweepstakes

Existing law provides that any person who contrives, prepares, sets up, proposes, or draws any lottery is guilty of a misdemeanor. This bill revises and recasts those provisions to, among others, apply those requirements to solicitation materials selling information regarding sweepstakes. The bill also prohibits all sweepstakes solicitations from representing that a person has been specially selected, as defined, unless that representation is true. The bill further prohibits sweepstakes solicitations from making various other misleading or false representations. In addition, the bill requires the official rules for a sweepstakes to disclose information about the date the final winner will be determined. The bill further prohibits a sweepstakes sponsor, as defined, from charging a fee as a condition of receiving a monetary distribution or obtaining information about a prize or sweepstakes. The bill contains other related provisions and other existing laws.
Effective date: January 1, 2009.

Tribal

AB 158 (Torrico, Chapter 754, Statutes of 2008) - Tribal gaming: local mitigation grants

This Budget trailer bill, an urgency measure, appropriates $30 million from the Indian Gaming Special Distribution Fund to the California Gambling Control Commission to provide local mitigation grants to local government agencies to mitigate the off-reservation impacts of tribal gaming and allows these funds to be used by counties for expenditures made in FY 2007-08 and FY 2008-09. The bill extends the sunset date of the local mitigation grant program by one year (until January 1, 2010). The bill also adds new requirements for the use of these grant funds. Specifically, the bill limits the use of grant funds and interest earnings to purposes that mitigate off-reservation impacts of tribal gaming, requires counties to submit annual reports as a condition of receiving funding, and requires grant recipients to demonstrate to their counties that all expenditures have been made in compliance with these provisions. In addition, the bill provides a definition of "special district" for purposes of grant funding to clarify existing law and revises the number of elected city representatives that are required to be included on the committee that approves grant projects, as specified.
Effective date: September 30, 2008.

AB 268 (Committee on Budget, Chapter 756, Statutes of 2008) - Transportation: Tribal-State Gaming Compact bonds

Existing law, the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, approved by the voters as Proposition 1B at the November 7, 2006, general election, authorizes the issuance of $19.925 billion of general obligation bonds for specified purposes, including $2 billion to be transferred to the Trade Corridors Improvement Fund (TCIF) for allocation by the California Transportation Commission (Commission) for infrastructure improvements along designated corridors, upon appropriation in the annual Budget Act. Eligible TCIF projects include, but are not limited to, highway capacity improvements and operational improvements, freight rail system improvements, projects to enhance the capacity and efficiency of ports, and truck corridor improvements, subject to commission determination, as specified. Existing law requires the commission to allocate TCIF funds to projects that have identified and committed supplemental funding from appropriate local, federal, or private sources. This bill, an urgency measure, requires the Commission to evaluate the potential costs and benefits of the TCIF program on the economy, environment, and public health, and requires collaboration with the State Air Resources Board in that regard. The bill sets forth a minimum allocation schedule for approved TCIF projects, and makes the Colton Crossing project ineligible for TCIF funding under specified circumstances. The bill requires the Commission and local transportation agencies to collaborate to select new projects upon the deprogramming of any TCIF project, as specified. The bill also requires the Department of Transportation, by February 18, 2009, to report to the Legislature regarding specified TCIF railroad agreements. This bill contains other related provisions and other existing laws. The bill authorizes money in the Traffic Congestion Relief Fund (TCRF) derived from the General Fund and not currently needed for expenditures on the projects listed in Section 14556.40 to be loaned to the General Fund through the annual Budget Act. Upon making a determination that funds in the TCRF are not adequate to support expected cash expenditures for the listed projects, the bill requires the Director of Finance, by executive order, to require the repayment of funds loaned to the General Fund under paragraph to be repaid to the TCRF. All these loans are required to be repaid upon the sale of Tribal-State Gaming Compact bonds authorized by Article 6.5 (commencing with Section 63048.6) of Chapter 2 of Division 1 of Title 6.7. If the proceeds from those bonds are insufficient to repay the funds loaned to the General Fund as specified, the bill requires the remaining amount of those loans to be repaid from future tribal gaming revenues, additional securitizations against those revenues, or from the General Fund.
This bill became effective on September 30, 2008.

AB 3072 (Price, Chapter 334, Statutes of 2008) - Tribal gaming: Tribal-State Gaming Compact ratification

This bill, an urgency measure, ratifies an amendment to a Tribal-State Gaming Compact entered into between the State of California and the Shingle Springs Band of Miwok Indians, executed on June 30, 2008. The bill requires that related revenue contributions be deposited into the General Fund, except as specified, and also provides that, in deference to tribal sovereignty, certain actions may not be deemed projects for purposes of the California Environmental Quality Act.
Effective date: September 26, 2008.