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TWO-YEAR RENEWAL CYCLE IMPLEMENTATION

In a continuing effort to streamline the gambling establishment renewal process, the Commission will be implementing a two-year renewal cycle. This will be a two-phase process.

• Phase I will be a rotation of the gambling establishments by issuing renewal terms ranging from 15 to 24 months beginning with gambling establishments expiring August 31, 2007. The rotation process will be completed by July 31, 2008.
• Phase II will be a two-year renewal cycle for all gambling establishments expiring after July 31, 2008.

How the two-year renewal process will work:

1. Gambling establishments should continue to submit their applications and appropriate fees 120 days in advance of their expiration date.
2. Once the Commission approves the renewal application during the rotation process, a new license will be issued with an expiration date ranging from 15 to 24 months.
3. All gambling establishments will be renewed at two-year terms after July 2008.
4. Annual table fees required under B&P Code section 19951 will still be collected annually. However, the process of collecting fees will change.

REVISION OF ANNUAL TABLE FEES COLLECTION PROCESS

B&P Code section 19876(a) requires the Commission to collect fees that are required pursuant to B&P Code section 19951, regardless of the renewal term of the gambling establishment. Therefore, a new process of collecting these fees will need to be implemented.

How the revised collection process will work:

• For gambling establishments whose expiration date is in 2007, annual table fees should continue to be submitted with renewal applications.
• For gambling establishments whose expiration date is in 2008, the Commission will provide instructions in the renewal notification letter regarding the submission of annual table fees, which will allow for the pro-rating of the fees.
• By December 31, 2008 all gambling establishments will have paid their annual table fees for 2008.
• Beginning January 2009, the Commission will send out courtesy notices at the beginning of each year reflecting a new standard due date of April 30th for all gambling establishments.
• Gambling establishments approved for installment payments will be required to submit their first installment by April 30th of each year. Subsequent installment payments would then be due August 31st and December 31st of each year.

ADDITIONAL INFORMATION

The Commission will be proposing regulations in the future that would have all gambling establishments submit annual table fees based on a January - December fiscal year with a due date of April 30th. Pending adoption of regulations requiring revenue reporting based on a January - December basis, gambling establishments are encouraged to voluntarily report on this basis.

QUESTIONS, CONCERNS OR SUGGESTIONS

Please contact the Commission's Licensing Division at (916) 263-0700 should you have any questions, concerns or suggestions.

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