Gambling-Related Legislation Chaptered in 2010
Bingo
SB 1090 (Cedillo, Chapter 514, Statutes of 2010) - Bingo: remote caller bingo.
The California Constitution allows the Legislature, by statute, to authorize cities and counties to provide for bingo games for charitable purposes. The California Remote Caller Bingo Act permits cities and counties to allow remote caller bingo games, as defined, to be conducted by specified organizations, including an organization that is exempt from the payment of the Bank and Corporation Tax under certain provisions, for charitable purposes pursuant to an ordinance that allows those games to be conducted only in accordance with specified requirements. The act sets forth a model ordinance for a city, county, or city and county to authorize remote caller bingo, and prohibits an organization from conducting remote caller bingo more than one day per week. This bill, an urgency measure, would conform those provisions describing the kinds of organizations that may conduct remote caller bingo throughout the act to include organizations that are exempt from the payment of taxes imposed under specified provisions of the Corporation Tax Law. The bill would permit an organization to conduct remote caller bingo two days per week, and would make other conforming and technical changes.
Effective date: September 29, 2010
Budget
ABX8 10 (Committee on Budget, Chapter 6, Statutes of 2010) - Tribal gaming: Tribal-State Gaming Compact assets.
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 these Compacts, subject to ratification by the Legislature. Existing law ratifies a number of Compacts between the State of California and specified Indian tribes. Existing law authorizes the Infrastructure and Economic Development Bank, upon a filing by the Director of Finance with the bank of a list of specified amended Compacts and Compact assets, to sell for, and on behalf of, the State all or any portion of those Compact assets to a special purpose trust. Existing law authorizes the special purpose trust to issue bonds secured by those Compact assets. Existing law provides that the portion of those Compact assets that are timely deposited or are due for deposit in a specified fund between July 1, 2008, and June 30, 2010, shall not be available for the purpose described above. Existing law requires the Director of Finance to determine the portion of those Compact assets attributable to each fiscal year, and authorizes the Director of Finance to direct the Controller, by separate order applicable to the assets for each fiscal year, to transfer the Compact assets attributable to that fiscal year to the General Fund. This bill would extend the period during which deposits of Compact assets are not available for the purpose described above from June 30, 2010, to June 30, 2011. This bill contains other related provisions and other existing laws.
Effective date: January 1, 2011.
SB 856 (Committee on Budget and Fiscal Review, Chapter 719, Statutes of 2010) - State government.
This bill, an urgency measure, is the General Government Budget trailer bill. The bill, in part, appropriates $30 million from the Indian Gaming Special Distribution Fund to restore funding deleted from the Budget Act of 2007 for the purpose of providing grants to local government agencies to mitigate the off-reservation impacts of Tribal gaming. The bill requires this appropriation to be distributed to local government agencies impacted by Tribal gaming to be based on the method for determining appropriations into individual Tribal casino accounts in effect in the 2006-07 fiscal year, and based on payments made into the SDF in the 2006-07 fiscal year.
Effective date: October 19, 2010.
SB 870 (Ducheny, Chapter 712, Statutes of 2010) - 2010-11 Budget.
This bill, an urgency measure, would make appropriations for support of State government for the 2010-11 fiscal year and includes appropriations for the California Gambling Control Commission. This bill contains other related provisions.
Effective date: October 8, 2010.
Cardrooms
AB 441 (Hall, Chapter 530, Statutes of 2010) - Local gaming.
Existing law permits a city, county, or city and county to permit controlled gambling, consistent with state law, if a majority of voters affirmatively approve an ordinance so permitting, as specified. Existing law provides that an amendment of an ordinance permitting an increase of 24.99% in the number of gambling tables that may be operated in a gambling establishment in a city, county, or city and county, or two tables, whichever is greater, compared to the ordinance in effect on January 1, 1996, may occur without voter approval. Any amendment to a city or county ordinance relating to gambling establishments or the Gambling Control Act is required to be submitted to the Bureau of Gambling Control within the Department of Justice for review and comment before the ordinance is adopted by the city or county. This bill, instead, would provide that an amendment of an ordinance permitting an increase of two tables in the number of gambling tables that may be operated in a gambling establishment in a city, county, or city and county, compared to the ordinance in effect on January 1, 2010, may occur without voter approval. The bill would permit a city, county, or city and county to exercise its authority to amend a local gaming ordinance without voter approval pursuant to this provision only one time.
Effective date: January 1, 2011.
AB 2596 (Portantino, Chapter 553, Statutes of 2010) - Gambling: licenses.
The Gambling Control Act provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the California Gambling Control Commission. Existing law provides for the enforcement of those activities by the Department of Justice. Existing law also requires that an application for renewal of a license application be filed with the commission no later than 120 days prior to expiration of the current license, as provided. This bill would allow the Commission to assess reasonable delinquency fees, not to exceed three times the application fee, when a renewal application is submitted after the deadline, as specified, but before the expiration date of the license. This bill would also provide that if an owner licensee has submitted an application for renewal, as provided, and the Commission is unable to act on the application prior to the expiration date, the Commission can extend the current license for up to 180 days. This bill makes other technical changes to the Gambling Control Act related the renewal of cardroom licenses.
Effective date: January 1, 2011.
Horse Racing
AB 1152 (Anderson, Chapter 53, Statutes of 2010) - Horse racing.
Existing law, effective January 1, 2011, requires an outrider (racing official) to be licensed by the California Horse Racing Board pursuant to certain provisions of law relating to stewards and racing officials. This bill, an urgency measure, would delete the requirement that outriders be licensed under those provisions. This bill contains other related provisions and other existing laws.
Effective date: July 9, 2010.
AB 1792 (Silva, Chapter 193, Statutes of 2010) - Horse racing: license fee reduction: quarter horse racing.
Existing law provides that, notwithstanding any other law and in lieu of any license fee payable to the state prescribed for or referred to in specified provisions of the Horse Racing Law, any association or fair that conducts a racing meeting shall pay its proportional amount, as determined by the formula devised by the California Horse Racing Board in consultation with the industry, as a license fee to the State to fund the Board and the Equine Drug Testing Program, as provided. Existing law provides that the license fee reductions resulting from these provisions, after payments to fund the Board and the Equine Drug Testing Program, shall be distributed as specified for thoroughbred racing, quarter horse racing, harness racing, and all other breeds. For quarter horse racing, 2.5% of the amount of the reduction is required to be deposited with the official registering agency and distributed as provided. This bill would increase to 3% the amount of the reduction for quarter horse racing that is to be deposited with the official registering agency for distribution.
Effective date: January 1, 2011.
AB 2201 (Coto, Chapter 253, Statutes of 2010) - Horse racing: harness racing: the Cane Pace.
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, the Kentucky Futurity, or the North American Cup. This bill would authorize 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 Cane Pace. The bill would also make technical, nonsubstantive changes.
Effective date: January 1, 2011.
AB 2215 (Fuentes, Chapter 255, Statutes of 2010) - Horse racing: advance deposit wagering: minisatellite wagering facilities.
Existing law authorizes advance deposit wagering to be conducted, with the approval of the California Horse Racing Board. Existing law requires the Board to develop and adopt rules to license and regulate all phases of operation of advance deposit wagering for advance deposit wagering providers operating in California. Existing law authorizes a racing association, a fair, or a satellite wagering facility to enter into an agreement with an advance deposit wagering provider to accept and facilitate the placement of any wager at its facility that a California resident could make through that advance deposit wagering provider. This bill would authorize a minisatellite wagering facility to enter into an agreement with an advance deposit wagering provider to accept and facilitate the placement of any wager at its facility that a California resident could make through that advance deposit wagering provider. The bill would also specify that the Board must develop and adopt rules to license and regulate advance deposit wagering activity that takes place in a minisatellite wagering facility. In addition, the bill would authorize the Board to recover any costs associated with the licensing or regulation of advance deposit wagering activity in a minisatellite wagering facility, as provided.
Effective date: January 1, 2011.
AB 2414 (John A. Perez, Chapter 299, Statutes of 2010) - Horse racing: exchange wagering.
This bill sunsets the exchange wagering provisions which are contained in SB 1072 (Calderon, Chapter 283, Statutes of 2010) on May 1, 2016.
Effective date: January 1, 2011.
AB 2790 (Committee on Governmental Organization, Chapter Number 141, Statutes of 2010) - Horse racing: out-of-state thoroughbred races: the Arlington Million.
Existing law authorizes a thoroughbred horse racing association or fair to distribute the audiovisual signal and accept wagers on the results of out-of-state thoroughbred races conducted in the United States during the calendar period the association or fair is conducting a race meeting, including days on which there is no live racing being conducted by the association or fair, without the consent of the organization that represents horsemen participating in the race meeting and without regard to the amount of purse. Existing law prohibits the total number of thoroughbred races imported by associations or fairs on a statewide basis from exceeding 32 per day on days when live thoroughbred or fair racing is being conducted in the state. However, that limitation excludes imported races that are part of the race card of the Kentucky Derby, Kentucky Oaks, and other specified races. This bill would add races that are part of the race card of the Arlington Million to the list of imported races not subject to the limitation of 32 races per day.
Effective date: January 1, 2011.
AB 2792 (Committee on Governmental Organization, Chapter 272, Statutes of 2010) - Horse racing.
Existing law, the Horse Racing Law, generally regulates horse racing and vests the administration and enforcement of the Horse Racing Law in the California Horse Racing Board. This bill would delete supporting the network of California fairs from that statement of intent. This bill contains other related provisions and other existing laws.
Effective date: January 1, 2011.
SB 899 (Denham, Chapter Number 279, Statutes of 2010) - Horse racing: satellite wagering: out-of-country thoroughbred races.
Existing law authorizes a thoroughbred racing association or fair to distribute the audiovisual signal and accept wagers on the results of out-of-country thoroughbred races during the calendar period the association or fair is conducting a race meeting, without the consent of the participating horsemen's organization. These imported races are subject to specified conditions, including the condition that the total number of out-of-country thoroughbred races on which wagers are allowed to be accepted statewide in any given year does not exceed the total number of out-of-country thoroughbred races on which wagers were accepted in 1998. This bill would delete that condition that limits the total number of out-of-country thoroughbred races on which wagers are allowed to be accepted statewide in any given year. This bill contains other related provisions.
Effective date: January 1, 2011.
SB 1072 (Calderon, Chapter 283, Statutes of 2010) - Horse racing: statewide marketing organization: Breeders' Cup promotion: wagering deduction: exchange wagering.
SB 1072 makes the following substantive changes and additions to California’s Horse Racing Law: (1) requires thoroughbred racing associations and fairs to deduct an additional amount of the total handle on exotic wagering (e.g., exacta, trifecta, superfecta) for purse augmentation; (2) authorizes the California Horse Racing Board to license entities to operate “exchange wagering” systems, as defined, that accept exchange wagers from individuals residing either within or outside of this state on horse races run in California or other states and makes it explicit that exchange wagering shall not become operative until May 1, 2012; (3) requires each exchange wagering licensee to annually distribute a specified amount of exchange wagering revenue to the existing jockey health and benefit welfare fund; (4) authorizes the thoroughbred racing industry to use monies from horse racing wagering pools to promote the Breeders’ Cup, in order that California might be considered the permanent home of this championship series of races; (5) extends the sunset, from January 1, 2011 to January 1, 2014, on provisions that authorize racing associations and fairs that conduct thoroughbred racing to pay to the owners’ organization a certain portion of the purses for a statewide marketing program, as specified, to increase interest in horse racing; and (6) provides that an amount not to exceed 0.05% of the total amount handled by each satellite wagering facility shall be distributed to the nonprofit organization designated by the Board for the purpose of maintaining a database of horse racing information, as defined.
Effective date: January 1, 2011.
SB 1486 (Committee on Governmental Organization, Chapter Number 127, Statutes of 2010) - Horse racing law intent: backstretch personnel housing: jockey riding fees.
Existing law provides that the intent of the Horse Racing Law is to allow parimutuel wagering on horse races while, among other things, supporting the network of California fairs. This bill would delete supporting the network of California fairs from that statement of intent. This bill contains other related provisions and other existing laws.
Effective date: January 1, 2011.
Lottery
AB 142 (Hayashi, Chapter 13, Statutes of 2010) California State Lottery.The California State Lottery Act of 1984, enacted by initiative, authorizes a California State Lottery and provides for its operation and administration by the California State Lottery Commission and the Director of the California State Lottery, with certain limitations. The act requires that not less than 84% of the total annual revenues from the sale of state lottery tickets or shares be returned to the public in the form of prizes and net revenues to benefit public education, and that no more than 16% of those revenues be used for expenses of the Lottery. The act further specifies that, of that 84%, 50% of the total annual lottery revenues be returned to the public in the form of prizes, and that at least 34% of those revenues be allocated to the benefit of public education. The act establishes the State Lottery Fund, a continuously appropriated fund for carrying out the purposes of the act. This bill, an urgency measure, would require revenues of the State Lottery to be allocated so as to maximize the amount of funding allocated to public education, and would require that not less than 87% of the total annual revenues of the State Lottery be returned to the public, and no more than 13% be used for lottery expenses. The bill would further specify that, of that 87%, not less than 50% of the total annual Lottery revenues, in an amount to be determined by the Commission, be returned to the public in the form of prizes. The bill would require the Commission to establish the percentage to be allocated to the benefit of public education at a level that maximizes the total net revenues allocated to the benefit of public education. By changing these allocations, the bill would change the purposes for which the funds of a continuously appropriated fund may be appropriated, and thereby would make an appropriation. The bill would make other conforming changes. This bill contains other related provisions and other existing laws.
Effective date: April 8, 2010.
Other Gaming
AB 1753 (Hall, Chapter 577, Statutes of 2010) - Slot machines.
Existing law, subject to exceptions, generally prohibits the possession and use of a " slot machine or device" as defined, and prohibits certain other acts and transactions pertaining to slot machines or devices. Existing law provides varying definitions of "slot machine or device" for these purposes. Violations of these provisions are punishable by varying misdemeanor penalties. This bill would increase those misdemeanor penalties to provide that a first offense under these provisions would be punishable by a fine of not less than $500 nor more than $1,000, or by imprisonment in a county jail not exceeding 6 months, or by both that fine and imprisonment, that a 2nd offense would be punishable by a fine of not less than $1,000 nor more than $10,000, or by imprisonment in a county jail not exceeding 6 months, or by both that fine and imprisonment, and that a 3rd or subsequent offense would be punishable by a fine of not less than $10,000, nor more than $25,000, or by imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment. The bill would also provide that if the offense involved more than one machine or more than one location, an additional fine of not less than $1,000 nor more than $5,000 would be imposed per machine and per location. This bill contains other related provisions and other existing laws.
Effective date: January 1, 2011.
Tribal
AB 122 (Coto, Chapter 3, Statutes of 2010) Tribal gaming: Tribal-State Gaming Compact ratification.
Existing federal law, the Indian Gaming Regulatory Act, 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 Compacts, and amendments of Compacts, between the State of California and specified Indian tribes. This bill, an urgency measure, would ratify the Compact entered into between the State of California and the Pinoleville Pomo Nation, executed on March 10, 2009. The bill would require that related revenue contributions be deposited into the General Fund, except as specified, and would also provide that, in deference to tribal sovereignty, certain actions may not be deemed projects for purposes of the California Environmental Quality Act. This bill contains other related provisions.
Effective date: February 9, 2010
SB 89 (Committee on Budget and Fiscal Review, Chapter 1, Statutes of 2010) - Tribal gaming: Tribal-State Gaming Compact ratification.
Existing federal law, the Indian Gaming Regulatory Act, 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 Compacts, and amendments Compacts, between the State of California and specified Indian tribes. This bill, an urgency measure, would ratify the Compact entered into between the State of California and the Habematolel Pomo of Upper Lake, executed on September 2, 2009. The bill would require that related revenue contributions be deposited into the General Fund, except as specified, and would also provide that, in deference to tribal sovereignty, certain actions may not be deemed projects for purposes of the California Environmental Quality Act. This bill contains other related provisions.
Effective date: January 7, 2010.