Existing law, 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. A willful violation of the act is a misdemeanor. Existing law requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified. Existing law also requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill would instead require the application described above to be filed within 60 calendar days after receipt of an order of the commission.

Existing law makes it a misdemeanor for a person who deals, plays, or carries on, opens, or causes to be opened, or who conducts, either as owner or employer, whether for hire or not, any of a list of specified gambling games, or any banking or percentage game played with cards, dice, or any device, for money, checks, credit, or any representative of value.

Existing law generally requires a person to be deemed unsuitable to hold a state gambling license under the California Gambling Control Act to own a gambling establishment if the person, or any partner, officer, director, or shareholder of that person, has any financial interest in any business or organization that is engaged in any form of gambling prohibited under the provision described above, whether within or without this state. Existing law exempts from these provisions a person who meets specified criteria, including a person who is licensed or had an application to be licensed on file with the commission on or before February 1, 2013. Existing law requires a person exempt under this provision, within 3 years of the date the closed business or organization reopens or becomes engaged in any form of gambling prohibited under the provision described above, to either divest that persons interest in the business or organization or divest that persons interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the commission.

During this 3-year divestment period, existing law makes it unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization that is engaged in any form of gambling prohibited under the provision described above, and a gambling enterprise or gambling establishment.

This bill would instead require an exempt person, within 6 years of the date the closed business or organization reopens or becomes engaged in any form of gambling prohibited under the provision described above, to either divest that persons interest in the business or organization or divest that persons interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the commission. The bill would also make conforming changes. By expanding the scope of an existing crime, the bill would impose a state-mandated local program.

The bill would require the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees of the Legislature on the progress of the construction of the City of Champions Revitalization Project and its impact on the divestment requirement described above. By imposing a reporting requirement on the City of Inglewood, this bill would impose a state-mandated local program.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Existing law, 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. A willful violation of the act is a misdemeanor. Existing law requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified. Existing law also requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill would instead require the application described above to be filed within 60 calendar days after receipt of an order of the commission.

Existing law makes it a misdemeanor for a person who deals, plays, or carries on, opens, or causes to be opened, or who conducts, either as owner or employer, whether for hire or not, any of a list of specified gambling games, or any banking or percentage game played with cards, dice, or any device, for money, checks, credit, or any representative of value.

Existing law generally requires a person to be deemed unsuitable to hold a state gambling license under the California Gambling Control Act to own a gambling establishment if the person, or any partner, officer, director, or shareholder of that person, has any financial interest in any business or organization that is engaged in any form of gambling prohibited under the provision described above, whether within or without this state. Existing law exempts from these provisions a person who meets specified criteria, including a person who is licensed or had an application to be licensed on file with the commission on or before February 1, 2013. Existing law requires a person exempt under this provision, within 3 years of the date the closed business or organization reopens or becomes engaged in any form of gambling prohibited under the provision described above, to either divest that persons interest in the business or organization or divest that persons interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the commission.

During this 3-year divestment period, existing law makes it unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization that is engaged in any form of gambling prohibited under the provision described above, and a gambling enterprise or gambling establishment.

This bill would instead require an exempt person, within 6 years of the date the closed business or organization reopens or becomes engaged in any form of gambling prohibited under the provision described above, to either divest that persons interest in the business or organization or divest that persons interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the commission. The bill would also make conforming changes. By expanding the scope of an existing crime, the bill would impose a state-mandated local program.

Existing law, 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. A willful violation of the act is a misdemeanor. Existing law requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified. Existing law also requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill would instead require the application described above to be filed within 60 calendar days after receipt of an order of the commission.

Existing law, 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 requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified. Existing law also requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill would instead require the application described above to be filed within 60 calendar days after receipt of an order of the commission.

GOVERNOR'S VETO

GV Bill Id:AB 2218

Author:(Burke)

As Enrolled Ver:September 9, 2016

2/3 vote

(G.O)

Original Committee Reference: G.O.

SUMMARY: Extends a licensing exemption for the owners of the card room located at the old Hollywood Park Racetrack. Additionally, extends the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability. Specifically, this bill:

1. Extends from three to six years a limited exemption in current law that authorizes the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements solely for the purposes of the licensure of a car club located on any portion of the grounds upon which a racetrack is or had been previously located and horse racing meetings were authorized to be conducted by the California Horse Racing Board (CHRB) on or before January 1, 2012, that is owned by a limited partnership that also owns or owned a racetrack.
2. Requires the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees on the progress of the construction of the City of Champions Revitalization Project and the project's impact on the divestment requirement contained in this bill.
3. Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
4. Extends from 45 to 60 days the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

The Senate amendments:

1. Extend from three to six years a limited exemption in current law that authorizes the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements solely for the purposes of the licensure of a car club located on any portion of the grounds upon which a racetrack is or had been previously located and horse racing meetings were authorized to be conducted by the California Horse Racing Board (CHRB) on or before January 1, 2012, that is owned by a limited partnership that also owns or owned a racetrack.
2. Require the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees on the progress of the construction of the City of Champions Revitalization Project and the project's impact on the divestment requirement contained in this bill.
3. Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.

EXISTING LAW:

1. The Gambling Control Act (Act) provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.
4. Provides that a person is deemed unsuitable to hold a state gambling license to own a gambling establishment if the person, or any partner, officer, director, or shareholder of the persons, has any financial interest in any business or organization that is engaged in a prohibited form of gambling, whether within or without this state, except as specified.
5. Authorizes the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements solely for the purposes of the licensure of a car club located on any portion of the grounds upon which a racetrack is or had been previously located and horse racing meetings were authorized to be conducted by the California Horse Racing Board (CHRB) on or before January 1, 2012, that is owned by a limited partnership that also owns or owned a racetrack.
6. Exempts from specified licensing requirements a person who (a) is licensed or had an application to be licensed on file with CGCC on or before February 1, 2013, (b) has a financial interest in a business or organization engaged in gambling prohibited by state law that was closed and was not engaged in prohibited gambling at a time the person was either licensed or had filed an application to be licensed or had filed an application to be licensed with the CGCC, and (c) has a financial interest in a gambling establishment that is located on any portion the grounds on which a racetrack is or had been previously located and horserace meetings were authorized to be conducted by CHRB on or before January 1, 2012, that is directly or indirectly owned by a racetrack limited partnership owner, as defined.
7. Requires an exempted person, within three years of the date the closed business or organization reopens or becomes engaged in any form of prohibited gambling, as specified, to either divest that person's interest in the business or organization, or divest that person's interest in the gambling enterprise or gambling establishments for which the person is licensed or has applied to be licensed by CGCC.
8. Specifies that during the three-year divestment period it is unlawful for any cross-promotion or marketing to occur between the business or organization that is engaged in any form of gambling, as specified. Defines "cross-promotion or marketing" as offering to any customers of the gambling enterprise or gambling establishment anything of value related to visiting or gambling at the business or organization engaged in any form of gambling, as specified.
9. Prohibits, during the three-year divestment period, any funds used in connection with the capital improvement of the gambling enterprise or gambling establishment from being provided from the gaming revenues of either the business or organization engaged in prohibited forms of gaming.
10. Specifies that, if at the end of the three-year divestment period, any person has not divested his/her interest in either the gambling enterprise or gambling establishment or the business or organization engaged in any form of prohibited gaming, the current prohibition as it read on January 1, 2013, will apply.
11. Requires an exempted person to inform CGCC within 30 days of the date on which a business or organization in which the person has a financial interest begins to engage in any form of prohibited gambling, as specified.

FISCAL EFFECT: Unknown

COMMENTS:

Background: The Hollywood Park Casino is owned by a group of public pension plan investors known as the Stockbridge Capital Partners, LLC, which also owns a share of the recently reopened SLS Hotel and Casino in Las Vegas.

The original purchase of the SLS Hotel and Casino, then known as Sahara Hotel, by Stockbridge was made under the assumption that leasing out the gaming casino at both the card club at Hollywood Park and the Sahara Hotel would avoid the prohibition that prevents an entity owning a card club in California from also owning an interest in a gambling facility that operates gaming which is prohibited in California. This assumption was found to be incorrect.

In 2012, AB 1290 (Hill) was introduced to address which individuals would need to be licensed at the card club and an exemption for ownership of the Sahara Hotel. The legislation was not enacted. As a result, the managers of Stockbridge agreed to be licensed by the CGCC.

However, because of the prohibition against owning out of state interest in a gambling establishment that operates gaming which is prohibited in California, the Legislature passed and the Governor signed SB 472 (Hill), Chapter 760, Statutes of 2013 which granted a three-year licensing exemption that gave Stockbridge a three year period after the SLS Casino and Hotel reopened to either divest their interest in the Hollywood Park Casino or the SLS Casino and Hotel.

In addition, the bill prohibited co-promotion activities between the Hollywood Park Casino and the SLS Hotel and Casino. The SLS Hotel and Casino reopened in late August of 2014 after going through massive remodeling. Thus, the current three year exemption would expire in late August of 2017.

Since the passage of SB 472, the St. Louis Rams reached a deal to return back to Los Angeles. The site that was selected to be the home of the Los Angeles Rams was the former Hollywood Park Racetrack where an 80,000 seat stadium, entertainment center, and retail and office complex is being built. As a result, the Hollywood card club is in the process of being moved about 100 yards from its current location. Hollywood Park has stated that the move and the construction in the area have resulted in a downturn in their business, which has prevented them from selling the property in the 3 years the owners were given to divest from either business.

This bill would extend the licensing exemption that gives Stockbridge a three year period to divest from Hollywood Park Casino or the SLS Casino and Hotel another 3 years, until August 2020.

Purpose of the bill: According to the author: "This bill simply extends the current three year divestment period in current law by an additional three years. This change would allow the public pension plans to retain their interest in the card club during the massive construction period required for the new project and avoid the public pension plans from having to divest of the card club during the major stadium/venue construction period. AB 2218 would retain all of the existing conditions of the current law exemption, while simply extending it for an additional three years while the massive construction activities occur at the site"

In addition the author argues that, "depending on an individual's various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC."

CalPERS Investment Report: The CalPERS 2014-2015 Annual Investment Report, which shows, among other things, performance on all investments, operations, and initiatives for the one-year period ending on June 30, 2015. The report lists the book value (value upon purchase) and market value (current value) of Stockbridge's real estate assets this bill seeks an exemption for – Hollywood Park Casino and the SLS Hotel and Casino. The Hollywood Park asset shows an increase in the investment of just over $29 million (Book Value: $52,773,489; Market Value: $81,775,383). The SLS Casino asset shows an increase of just under $1 million (Book Value: $33,915,001; Market Value: $34,759,908). It is important to note that the CalPERS report is a snapshot of the fiscal year and does not take into account the entire life of the investments in question.

Gambling Control Commission (CGCC): The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare. The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice Bureau of Gambling Control (DOJ or Bureau) conducts background and field investigations and enforces the provisions of the Act in this regard.

Arguments in Support: According to the State Building and Construction Trades Council of California, "the Hollywood Park site in Inglewood has been chosen for construction of a new, state of the art, NFL stadium. This addition, along with a 7,000 seat music venue will make this project a world class location in Southern California. Just as important, it will provide an estimated 30,000 new jobs, many of which will be good paying jobs in the construction industry, which our members are very excited about. We also understand that a construction project of this magnitude, while a tremendous economic driver for the region, will have a temporary impact on the business of the card club located directly adjacent to the overall project. This bill simply extends the current divestment period for an additional three years while the massive construction efforts are underway."

Arguments in Opposition: According to the United Auburn Indian Community, "we did not oppose the first exemption in the spirit of allowing the pension fund investors time to sort out the conflicting ownerships. But they have had ample time to divest themselves from one or the other operation. To allow an additional exemption would undermine the purpose and intent of the underlying California law."

Opponents of the bill also argue that, "the special interest exception represented by AB 2218 is unnecessary as there is still adequate time under the existing exception for Stockbridge and Hollywood Park Casino Company (HPCC) to determine whether to divest themselves of either Hollywood Park Casino or the SLS Las Vegas. Hollywood Park Casino has announced that it will momentarily be opening its new casino facility. The fact that there is construction occurring elsewhere on the larger site has no impact on the divestiture decision. This requested special exemption serves no purpose other than granting Stockbridge and HPCC much more time to determine which property is more valuable. We submit that maximizing Stockbridge's and HPCC's profits is not the job of the Legislature and most certainly does not provide a sound basis upon which to continue to alter a fundamental public policy."

Prior/Related Legislation: SB 472 (Hill), Chapter 760, Statutes of 2013. Created a three-year licensing exemption for the owners of the card room located at Hollywood Park Racetrack by authorizing the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements.

SB 356 (Yee) of 2013-2014. The bill would allow a person or entity with a financial interest in a foreign gambling operation to retain a California Gambling license. (Held in Assembly Appropriations Committee)

AB 1290 (Hill) of 2011-2012. The bill would have repealed an existing body of law in the Act relative to an exemption from licensing requirements for a card club on the grounds of a racetrack and recast that body of law. The bill was intended to ensure the continued operations of the card club located at the Hollywood Park Racetrack. (Held on the Inactive File on the Senate Floor)

AB 2526 (Hall) of 2012 would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall) of 2011 would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in Assembly Governmental Organization Committee)

AB 3068 (Horton), Chapter 868, Statutes of 2006. The bill extended the provisions which apply to a publicly traded corporation owning a card club located on the grounds of the entity's racetrack to a limited liability company or a limited partnership.

GOVERNOR'S VETO MESSAGE:

I am returning Assembly Bill 2218 without my signature.

This bill provides the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the SLS Casino in Nevada.

The City of Champions Revitalization Project will continue to bring enormous economic benefits to Inglewood regardless of whether the cardroom is sold next year or in 2020. If our gambling laws are based on outdated policies or assumptions, we should thoughtfully examine those laws and amend them so that all participants in the industry receive the same benefits and opportunities.

Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531 FN: 0005134

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA2 Bill Id:AB 2218

Author:(Burke)

As Amended Ver:August 19, 2016

Majority vote

G.O.

Original Committee Reference: G.O.

SUMMARY: Extends a licensing exemption for the owners of the card room located at the old Hollywood Park Racetrack. Additionally, extends the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability. Specifically, this bill:

1. Extends from three to six years a limited exemption in current law that authorizes the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements solely for the purposes of the licensure of a car club located on any portion of the grounds upon which a racetrack is or had been previously located and horse racing meetings were authorized to be conducted by the California Horse Racing Board (CHRB) on or before January 1, 2012, that is owned by a limited partnership that also owns or owned a racetrack.
2. Requires the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees on the progress of the construction of the City of Champions Revitalization Project and the project's impact on the divestment requirement contained in this bill.
3. Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.
4. Extends from 45 to 60 days the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

The Senate amendments:

1. Extend from three to six years a limited exemption in current law that authorizes the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements solely for the purposes of the licensure of a car club located on any portion of the grounds upon which a racetrack is or had been previously located and horse racing meetings were authorized to be conducted by the California Horse Racing Board (CHRB) on or before January 1, 2012, that is owned by a limited partnership that also owns or owned a racetrack.
2. Require the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees on the progress of the construction of the City of Champions Revitalization Project and the project's impact on the divestment requirement contained in this bill.
3. Makes legislative findings and declarations as to the necessity of a special statute for the City of Inglewood.

EXISTING LAW:

1. The Gambling Control Act (Act) provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.
4. Provides that a person is deemed unsuitable to hold a state gambling license to own a gambling establishment if the person, or any partner, officer, director, or shareholder of the persons, has any financial interest in any business or organization that is engaged in a prohibited form of gambling, whether within or without this state, except as specified.
5. Authorizes the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements solely for the purposes of the licensure of a car club located on any portion of the grounds upon which a racetrack is or had been previously located and horse racing meetings were authorized to be conducted by the California Horse Racing Board (CHRB) on or before January 1, 2012, that is owned by a limited partnership that also owns or owned a racetrack.
6. Exempts from specified licensing requirements a person who a) is licensed or had an application to be licensed on file with CGCC on or before February 1, 2013, b) has a financial interest in a business or organization engaged in gambling prohibited by state law that was closed and was not engaged in prohibited gambling at a time the person was either licensed or had filed an application to be licensed or had filed an application to be licensed with the CGCC, and c) has a financial interest in a gambling establishment that is located on any portion the grounds on which a racetrack is or had been previously located and horserace meetings were authorized to be conducted by CHRB on or before January 1, 2012, that is directly or indirectly owned by a racetrack limited partnership owner, as defined.
7. Requires an exempted person, within three years of the date the closed business or organization reopens or becomes engaged in any form of prohibited gambling, as specified, to either divest that person's interest in the business or organization, or divest that person's interest in the gambling enterprise or gambling establishments for which the person is licensed or has applied to be licensed by CGCC.
8. Specifies that during the three-year divestment period it is unlawful for any cross-promotion or marketing to occur between the business or organization that is engaged in any form of gambling, as specified. Defines "cross-promotion or marketing" as offering to any customers of the gambling enterprise or gambling establishment anything of value related to visiting or gambling at the business or organization engaged in any form of gambling, as specified.
9. Prohibits, during the three-year divestment period, any funds used in connection with the capital improvement of the gambling enterprise or gambling establishment from being provided from the gaming revenues of either the business or organization engaged in prohibited forms of gaming.
10. Specifies that, if at the end of the three-year divestment period, any person has not divested his/her interest in either the gambling enterprise or gambling establishment or the business or organization engaged in any form of prohibited gaming, the current prohibition as it read on January 1, 2013, will apply.
11. Requires an exempted person to inform CGCC within 30 days of the date on which a business or organization in which the person has a financial interest begins to engage in any form of prohibited gambling, as specified.

FISCAL EFFECT: Unknown

COMMENTS:

Background: The Hollywood Park Casino is owned by a group of public pension plan investors known as the Stockbridge Capital Partners, LLC, which also owns a share of the recently reopened SLS Hotel and Casino in Las Vegas.

The original purchase of the SLS Hotel and Casino, then known as Sahara Hotel, by Stockbridge was made under the assumption that leasing out the gaming casino at both the card club at Hollywood Park and the Sahara Hotel would avoid the prohibition that prevents an entity owning a card club in California from also owning an interest in a gambling facility that operates gaming which is prohibited in California. This assumption was found to be incorrect.

In 2011, AB 1290 (Hill) of 2011-12 was introduced to address which individuals would need to be licensed at the card club and an exemption for ownership of the Sahara Hotel. The legislation was not enacted. As a result, the managers of Stockbridge agreed to be licensed by the CGCC.

However, because of the prohibition against owning out of state interest in a gambling establishment that operates gaming which is prohibited in California, the Legislature passed and the Governor signed SB 472 (Hill), Chapter 760, Statutes of 2013 which granted a three-year licensing exemption that gave Stockbridge a three year period after the SLS Casino and Hotel reopened to either divest their interest in the Hollywood Park Casino or the SLS Casino and Hotel.

In addition, the bill prohibited co-promotion activities between the Hollywood Park Casino and the SLS Hotel and Casino. The SLS Hotel and Casino reopened in late August of 2014 after going through massive remodeling. Thus, the current three year exemption would expire in late August of 2017.

Since the passage of SB 472, the St. Louis Rams reached a deal to return back to Los Angeles. The site that was selected to be the home of the Los Angeles Rams was the former Hollywood Park Racetrack where an 80,000 seat stadium, entertainment center, and retail and office complex is being built. As a result, the Hollywood card club is in the process of being moved about 100 yards from its current location. Hollywood Park has stated that the move and the construction in the area have resulted in a downturn in their business, which has prevented them from selling the property in the three years the owners were given to divest from either business.

AB 2218 would extend the licensing exemption that gives Stockbridge a three year period to divest from Hollywood Park Casino or the SLS Casino and Hotel another three years, until August 2020.

Purpose of the bill: According to the author: "This bill simply extends the current three year divestment period in current law by an additional three years. This change would allow the public pension plans to retain their interest in the card club during the massive construction period required for the new project and avoid the public pension plans from having to divest of the card club during the major stadium/venue construction period. AB 2218 would retain all of the existing conditions of the current law exemption, while simply extending it for an additional three years while the massive construction activities occur at the site"

In addition the author argues that, "depending on an individual's various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC."

CalPERS Investment Report: The CalPERS 2014-2015 Annual Investment Report, which shows, among other things, performance on all investments, operations, and initiatives for the one-year period ending on June 30, 2015. The report lists the book value (value upon purchase) and market value (current value) of Stockbridge's real estate assets this bill seeks an exemption for – Hollywood Park Casino and the SLS Hotel and Casino. The Hollywood Park asset shows an increase in the investment of just over $29 million (Book Value: $52,773,489; Market Value: $81,775,383). The SLS Casino asset shows an increase of just under $1 million (Book Value: $33,915,001; Market Value: $34,759,908). It is important to note that the CalPERS report is a snapshot of the fiscal year and does not take into account the entire life of the investments in question.

Gambling Control Commission (CGCC): The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare. The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice Bureau of Gambling Control (DOJ or Bureau) conducts background and field investigations and enforces the provisions of the Act in this regard.

Arguments in Support: According to the State Building and Construction Trades Council of California, "the Hollywood Park site in Inglewood has been chosen for construction of a new, state of the art, NFL stadium. This addition, along with a 7,000 seat music venue will make this project a world class location in Southern California. Just as important, it will provide an estimated 30,000 new jobs, many of which will be good paying jobs in the construction industry, which our members are very excited about. We also understand that a construction project of this magnitude, while a tremendous economic driver for the region, will have a temporary impact on the business of the card club located directly adjacent to the overall project. This bill simply extends the current divestment period for an additional three years while the massive construction efforts are underway."

Arguments in Opposition: According to the United Auburn Indian Community, "we did not oppose the first exemption in the spirit of allowing the pension fund investors time to sort out the conflicting ownerships. But they have had ample time to divest themselves from one or the other operation. To allow an additional exemption would undermine the purpose and intent of the underlying California law."

Opponents of the bill also argue that, "the special interest exception represented by AB 2218 is unnecessary as there is still adequate time under the existing exception for Stockbridge and Hollywood Park Casino Company (HPCC) to determine whether to divest themselves of either Hollywood Park Casino or the SLS Las Vegas. Hollywood Park Casino has announced that it will momentarily be opening its new casino facility. The fact that there is construction occurring elsewhere on the larger site has no impact on the divestiture decision. This requested special exemption serves no purpose other than granting Stockbridge and HPCC much more time to determine which property is more valuable. We submit that maximizing Stockbridge's and HPCC's profits is not the job of the Legislature and most certainly does not provide a sound basis upon which to continue to alter a fundamental public policy."

Prior/Related Legislation: SB 472 (Hill), Chapter 760, Statutes of 2013. Created a three-year licensing exemption for the owners of the card room located at Hollywood Park Racetrack by authorizing the CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements.

SB 356 (Yee) of 2013-14. The bill would allow a person or entity with a financial interest in a foreign gambling operation to retain a California Gambling license. (Held in Assembly Appropriations Committee)

AB 1290 (Hill) of 2011-12. The bill would have repealed an existing body of law in the Act relative to an exemption from licensing requirements for a card club on the grounds of a racetrack and recast that body of law. The bill was intended to ensure the continued operations of the card club located at the Hollywood Park Racetrack. (Held on the Inactive File on the Senate Floor)

AB 2526 (Hall) of 2012 would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall) of 2011 would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in Assembly Governmental Organization Committee)

AB 3068 (Horton), Chapter 868, Statutes of 2006. The bill extended the provisions which apply to a publicly traded corporation owning a card club located on the grounds of the entity's racetrack to a limited liability company or a limited partnership.

Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531 FN: 0005012

 THIRD READING  

Bill No: AB 2218

Author:

Amended: 8/19/16 in Senate

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16

AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak

SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 8/18/16 (pursuant to Senate Rule 29.10)

AYES: Hall, Berryhill, Bates, Block, Gaines, Glazer, Hernandez, Hill, Lara, McGuire, Vidak

NO VOTE RECORDED: Galgiani, Hueso

SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8

ASSEMBLY FLOOR: 75-0, 4/14/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill extends the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas. In addition, this bill extends from 45 to 60 days the time after receipt of an order by the California Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

Senate Floor Amendments of 8/19/16 require the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees of the Legislature on the progress of the construction of the City of Champions Revitalization Project and its impact on the divestment requirement.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.
4. Requires a person to be deemed unsuitable to hold a state gambling license under the Act to own a gambling establishment if the person, or any partner, officer, director, or shareholder of that person, has any financial interest in any business that is engaged in any form of gambling that is a prohibited form of gambling, whether within or out of this state.
5. Exempts from the provision above, a person who meets specified criteria, including a person who is licensed or had an application to be licensed on file with CGCC on or before February 1, 2013. A person exempt under this provision is required to either divest that person’s interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the CGCC, within three years of the date that the closed business reopens.
6. Specifies that during this three-year divestment period, it is unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization that is engaged in any form of prohibited gambling.

This bill:

1. Extends the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas.
2. Requires the City of Inglewood, by July 1, 2018, to prepare and submit a report to the Legislature and appropriate policy committees of the Legislature on the progress of the construction of the City of Champions Revitalization Project and its impact on the divestment requirement.
3. Extends from 45 to 60 days the time after receipt of an order by the CGCC within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author, “this bill simply extends the current three year divestment period in current law by an additional three years. This change would allow the public pension plans to retain their interest in the card club during the massive construction period required for the new project and avoid the public pension plans from having to divest of the card club during the major stadium/venue construction period. AB 2218 would retain all of the existing conditions of the current law exemption, while simply extending it for an additional three years while the massive construction activities occur at the site”

In addition the author argues that, “depending on an individual’s various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC.”

Previous exemption. The Hollywood Park Casino is owned by a group of public pension plan investors known as the Stockbridge Capital Partners, LLC, which also owns a share of the recently reopened SLS Hotel and Casino in Las Vegas.

The original purchase of the SLS Hotel and Casino, then known as Sahara Hotel, by Stockbridge was made under the assumption that leasing out the gaming casino at both the card club at Hollywood Park and the Sahara Hotel would avoid the prohibition that prevents an entity owning a card club in California from also owning an interest in a gambling facility that operates gaming which is prohibited in California. This assumption was found to be incorrect.

In 2012, AB 1290 (Hill) was introduced to address which individuals would need to be licensed at the card club and an exemption for ownership of the Sahara Hotel. The bill was not enacted. As a result, the managers of Stockbridge agreed to be licensed by the CGCC.

However, because of the prohibition against owning out of state interest in a gambling establishment that operates gaming which is prohibited in California, the Legislature passed and the Governor signed SB 472 (Hill, Chapter 760, Statutes of 2013) which granted a three-year licensing exemption that gave Stockbridge a three year period after the SLS Casino and Hotel reopened to either divest their interest in the Hollywood Park Casino or the SLS Casino and Hotel.

In addition, the bill prohibited co-promotion activities between the Hollywood Park Casino and the SLS Hotel and Casino. The SLS Hotel and Casino reopened in late August of 2014 after going through massive remodeling. Thus, the current three year exemption would expire in late August of 2017.

Since the passage of SB 472, the St. Louis Rams reached a deal to return back to Los Angeles. The site that was selected to be the home of the Los Angeles Rams, including Cal quarterback and number one draft pick, Jared Goff, was the former Hollywood Park Racetrack where an 80,000 seat stadium, entertainment center, and retail and office complex is being built. As a result, the Hollywood card club is in the process of being moved about 100 yards from its current location. Hollywood Park has stated that the move and the construction in the area have resulted in a downturn in their business.

Supporters argue that an additional three years would allow Stockbridge sufficient time to develop a reasonable divestment plan based on the current circumstances that were unknown of when the original exemption was granted.

Gambling Control Act. The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice conducts background and field investigations and enforces the provisions of the Act in this regard.

Prior Legislation

SB 356 (Yee, 2013) would have removed, under certain circumstances, the prohibition against obtaining a gambling license in California if the person, partner, officer, director, or shareholder has a financial interest in an organization engaged in a prohibited form of gambling either in or out of the state. (Held in the Assembly Appropriations Committee Suspense File)

SB 472 (Hill, Chapter 760, Statues of 2013) created a three-year licensing exemption for the owners of the Hollywood Park by authorizing CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements.

AB 1290 (Hill, 2012) would have repealed existing laws regarding an exemption from licensing requirements for Hollywood Park.

AB 2526 (Hall, 2012) would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall, 2011) would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in the Assembly Governmental Organization Committee)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local: Yes

SUPPORT: (Verified 8/22/16)

California State Association of Electrical Workers

California State Pipe Trades Council

California Teamsters Public Affairs Council

Clear Global, LLC

International Union of Elevator Workers

Los Angeles County Federation of Labor

Lucky Chances Casino

Painters and Allied Trades, District Council 36

Seven Mile Casino

State Building and Construction Trades Council of California

Unite-Here, AFL-CIO

Western States Council of Sheet Metal Workers

OPPOSITION: (Verified 8/22/16)

Bicycle Hotel & Casino

California Nations Indian Gaming Association

Commerce Casino

Hawaiian Gardens Casino

Hustler Casino

Lucky Lady Casino

Morongo Band of Mission Indians

Rincon Band of Luiseño Indians

San Manuel Band of Mission Indians

Santa Ynez Band of Chumash Indians

United Auburn Indian Community

ARGUMENTS IN SUPPORT: According to the State Building and Construction Trades Council of California, “the Hollywood Park site in Inglewood has been chosen for construction of a new, state of the art, NFL stadium. This addition, along with a 7,000 seat music venue will make this project a world class location in Southern California. Just as important, it will provide an estimated 30,000 new jobs, many of which will be good paying jobs in the construction industry, which our members are very excited about. We also understand that a construction project of this magnitude, while a tremendous economic driver for the region, will have a temporary impact on the business of the card club located directly adjacent to the overall project. This bill simply extends the current divestment period for an additional three years while the massive construction efforts are underway.”

ARGUMENTS IN OPPOSITION: According to the United Auburn Indian Community, “we did not oppose the first exemption in the spirit of allowing the pension fund investors time to sort out the conflicting ownerships. But they have had ample time to divest themselves from one or the other operation. To allow an additional exemption would undermine the purpose and intent of the underlying California law.”

Opponents of this bill also argue that, “the special interest exception represented by AB 2218 is unnecessary as there is still adequate time under the existing exception for Stockbridge and Hollywood Park Casino Company (HPCC) to determine whether to divest themselves of either Hollywood Park Casino or the SLS Las Vegas. Hollywood Park Casino has announced that it will momentarily be opening its new casino facility. The fact that there is construction occurring elsewhere on the larger site has no impact on the divestiture decision. This requested special exemption serves no purpose other than granting Stockbridge and HPCC much more time to determine which property is more valuable. We submit that maximizing Stockbridge’s and HPCC’s profits is not the job of the Legislature and most certainly does not provide a sound basis upon which to continue to alter a fundamental public policy.”

ASSEMBLY FLOOR: 75-0, 4/14/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Irwin, Levine, McCarty, Melendez, Nazarian

Prepared by:

8/24/16 18:31:50

**** END ****

 THIRD READING  

Bill No: AB 2218

Author:

Amended: 8/11/16 in Senate

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16

AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak

SENATE GOVERNMENTAL ORG. COMMITTEE: 11-0, 8/18/16 (pursuant to Senate Rule 29.10)

AYES: Hall, Berryhill, Bates, Block, Gaines, Glazer, Hernandez, Hill, Lara, McGuire, Vidak

NO VOTE RECORDED: Galgiani, Hueso

ASSEMBLY FLOOR: 75-0, 4/14/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill extends the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas. In addition, this bill extends from 45 to 60 days the time after receipt of an order by the California Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

Senate Floor Amendments of 8/11/16 extend the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.
4. Requires a person to be deemed unsuitable to hold a state gambling license under the Act to own a gambling establishment if the person, or any partner, officer, director, or shareholder of that person, has any financial interest in any business that is engaged in any form of gambling that is a prohibited form of gambling, whether within or out of this state.
5. Exempts from the provision above, a person who meets specified criteria, including a person who is licensed or had an application to be licensed on file with CGCC on or before February 1, 2013. A person exempt under this provision is required to either divest that person’s interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the CGCC, within three years of the date that the closed business reopens.
6. Specifies that during this three-year divestment period, it is unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization that is engaged in any form of prohibited gambling.

This bill:

1. Extends the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas.
2. Extends from 45 to 60 days the time after receipt of an order by the CGCC within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author, “this bill simply extends the current three year divestment period in current law by an additional three years. This change would allow the public pension plans to retain their interest in the card club during the massive construction period required for the new project and avoid the public pension plans from having to divest of the card club during the major stadium/venue construction period. AB 2218 would retain all of the existing conditions of the current law exemption, while simply extending it for an additional three years while the massive construction activities occur at the site”

In addition the author argues that, “depending on an individual’s various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC.”

Previous exemption. The Hollywood Park Casino is owned by a group of public pension plan investors known as the Stockbridge Capital Partners, LLC, which also owns a share of the recently reopened SLS Hotel and Casino in Las Vegas.

The original purchase of the SLS Hotel and Casino, then known as Sahara Hotel, by Stockbridge was made under the assumption that leasing out the gaming casino at both the card club at Hollywood Park and the Sahara Hotel would avoid the prohibition that prevents an entity owning a card club in California from also owning an interest in a gambling facility that operates gaming which is prohibited in California. This assumption was found to be incorrect.

In 2012, AB 1290 (Hill) was introduced to address which individuals would need to be licensed at the card club and an exemption for ownership of the Sahara Hotel. The bill was not enacted. As a result, the managers of Stockbridge agreed to be licensed by the CGCC.

However, because of the prohibition against owning out of state interest in a gambling establishment that operates gaming which is prohibited in California, the Legislature passed and the Governor signed SB 472 (Hill, Chapter 760, Statutes of 2013) which granted a three-year licensing exemption that gave Stockbridge a three year period after the SLS Casino and Hotel reopened to either divest their interest in the Hollywood Park Casino or the SLS Casino and Hotel.

In addition, the bill prohibited co-promotion activities between the Hollywood Park Casino and the SLS Hotel and Casino. The SLS Hotel and Casino reopened in late August of 2014 after going through massive remodeling. Thus, the current three year exemption would expire in late August of 2017.

Since the passage of SB 472, the St. Louis Rams reached a deal to return back to Los Angeles. The site that was selected to be the home of the Los Angeles Rams, including Cal quarterback and number one draft pick, Jared Goff, was the former Hollywood Park Racetrack where an 80,000 seat stadium, entertainment center, and retail and office complex is being built. As a result, the Hollywood card club is in the process of being moved about 100 yards from its current location. Hollywood Park has stated that the move and the construction in the area have resulted in a downturn in their business.

Supporters argue that an additional three years would allow Stockbridge sufficient time to develop a reasonable divestment plan based on the current circumstances that were unknown of when the original exemption was granted.

Gambling Control Act. The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice conducts background and field investigations and enforces the provisions of the Act in this regard.

Prior Legislation

SB 356 (Yee, 2013) would have removed, under certain circumstances, the prohibition against obtaining a gambling license in California if the person, partner, officer, director, or shareholder has a financial interest in an organization engaged in a prohibited form of gambling either in or out of the state. (Held in the Assembly Appropriations Committee Suspense File)

SB 472 (Hill, Chapter 760, Statues of 2013) created a three-year licensing exemption for the owners of the Hollywood Park by authorizing CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements.

AB 1290 (Hill, 2012) would have repealed existing laws regarding an exemption from licensing requirements for Hollywood Park.

AB 2526 (Hall, 2012) would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall, 2011) would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in the Assembly Governmental Organization Committee)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local: Yes

Unknown

SUPPORT: (Verified 8/17/16)

California State Association of Electrical Workers

California State Pipe Trades Council

California Teamsters Public Affairs Council

Clear Global, LLC

International Union of Elevator Workers

Los Angeles County Federation of Labor

Lucky Chances Casino

Painters and Allied Trades, District Council 36

Seven Mile Casino

State Building and Construction Trades Council of California

Unite-Here, AFL-CIO

Western States Council of Sheet Metal Workers

OPPOSITION: (Verified 8/17/16)

Bicycle Hotel & Casino

California Nations Indian Gaming Association

Commerce Casino

Hawaiian Gardens Casino

Hustler Casino

Lucky Lady Casino

Morongo Band of Mission Indians

Rincon Band of Luiseño Indians

San Manuel Band of Mission Indians

Santa Ynez Band of Chumash Indians

United Auburn Indian Community

ARGUMENTS IN SUPPORT: According to the State Building and Construction Trades Council of California, “the Hollywood Park site in Inglewood has been chosen for construction of a new, state of the art, NFL stadium. This addition, along with a 7,000 seat music venue will make this project a world class location in Southern California. Just as important, it will provide an estimated 30,000 new jobs, many of which will be good paying jobs in the construction industry, which our members are very excited about. We also understand that a construction project of this magnitude, while a tremendous economic driver for the region, will have a temporary impact on the business of the card club located directly adjacent to the overall project. This bill simply extends the current divestment period for an additional three years while the massive construction efforts are underway.”

ARGUMENTS IN OPPOSITION: According to the United Auburn Indian Community, “we did not oppose the first exemption in the spirit of allowing the pension fund investors time to sort out the conflicting ownerships. But they have had ample time to divest themselves from one or the other operation. To allow an additional exemption would undermine the purpose and intent of the underlying California law.”

Opponents of this bill also argue that, “the special interest exception represented by AB 2218 is unnecessary as there is still adequate time under the existing exception for Stockbridge and Hollywood Park Casino Company (HPCC) to determine whether to divest themselves of either Hollywood Park Casino or the SLS Las Vegas. Hollywood Park Casino has announced that it will momentarily be opening its new casino facility. The fact that there is construction occurring elsewhere on the larger site has no impact on the divestiture decision. This requested special exemption serves no purpose other than granting Stockbridge and HPCC much more time to determine which property is more valuable. We submit that maximizing Stockbridge’s and HPCC’s profits is not the job of the Legislature and most certainly does not provide a sound basis upon which to continue to alter a fundamental public policy.”

ASSEMBLY FLOOR: 75-0, 4/14/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Irwin, Levine, McCarty, Melendez, Nazarian

Prepared by:

8/18/16 16:57:29

**** END ****

 THIRD READING  

Bill No: AB 2218

Author:

Amended: 8/11/16 in Senate

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16

AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak

ASSEMBLY FLOOR: 75-0, 4/14/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill extends the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas. In addition, the bill extends from 45 to 60 days the time after receipt of an order by the California Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

Senate Floor Amendments of 8/11/16 extend the provision in current law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act (Act), for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.
4. Requires a person to be deemed unsuitable to hold a state gambling license under the Act to own a gambling establishment if the person, or any partner, officer, director, or shareholder of that person, has any financial interest in any business that is engaged in any form of gambling that is a prohibited form of gambling, whether within or out of this state.
5. Exempts from the provision above, a person who meets specified criteria, including a person who is licensed or had an application to be licensed on file with CGCC on or before February 1, 2013. A person exempt under this provision is required to either divest that person’s interest in the gambling enterprise or gambling establishment for which the person is licensed or has applied to be licensed by the CGCC, within three years of the date that the closed business reopens.
6. Specifies that during this three-year divestment period, it is unlawful for any cross-promotion or marketing, as defined, to occur between the business or organization that is engaged in any form of prohibited gambling.

This bill:

1. Extends the provision in existing law allowing the owners of the Hollywood Park Casino three additional years to divest of its interest in the card club or the Nevada casino, known as the SLS Hotel and Casino in Las Vegas.
2. Extends from 45 to 60 days the time after receipt of an order by the CGCC within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author, “this bill simply extends the current three year divestment period in current law by an additional three years. This change would allow the public pension plans to retain their interest in the card club during the massive construction period required for the new project and avoid the public pension plans from having to divest of the card club during the major stadium/venue construction period. AB 2218 would retain all of the existing conditions of the current law exemption, while simply extending it for an additional three years while the massive construction activities occur at the site”

In addition the author argues that, “depending on an individual’s various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC.”

Previous exemption. The Hollywood Park Casino is owned by a group of public pension plan investors known as the Stockbridge Capital Partners, LLC, which also owns a share of the recently reopened SLS Hotel and Casino in Las Vegas.

The original purchase of the SLS Hotel and Casino, then known as Sahara Hotel, by Stockbridge was made under the assumption that leasing out the gaming casino at both the card club at Hollywood Park and the Sahara Hotel would avoid the prohibition that prevents an entity owning a card club in California from also owning an interest in a gambling facility that operates gaming which is prohibited in California. This assumption was found to be incorrect.

In 2012, AB 1290 (Hill) was introduced to address which individuals would need to be licensed at the card club and an exemption for ownership of the Sahara Hotel. The legislation was not enacted. As a result, the managers of Stockbridge agreed to be licensed by the CGCC.

However, because of the prohibition against owning out of state interest in a gambling establishment that operates gaming which is prohibited in California, the Legislature passed and the Governor signed SB 472 (Hill, Chapter 760, Statutes of 2013) which granted a three-year licensing exemption that gave Stockbridge a three year period after the SLS Casino and Hotel reopened to either divest their interest in the Hollywood Park Casino or the SLS Casino and Hotel.

In addition, the bill prohibited co-promotion activities between the Hollywood Park Casino and the SLS Hotel and Casino. The SLS Hotel and Casino reopened in late August of 2014 after going through massive remodeling. Thus, the current three year exemption would expire in late August of 2017.

Since the passage of SB 472, the St. Louis Rams reached a deal to return back to Los Angeles. The site that was selected to be the home of the Los Angeles Rams, including Cal quarterback and number one draft pick, Jared Goff, was the former Hollywood Park Racetrack where an 80,000 seat stadium, entertainment center, and retail and office complex is being built. As a result, the Hollywood card club is in the process of being moved about 100 yards from its current location. Hollywood Park has stated that the move and the construction in the area have resulted in a downturn in their business.

Supporters argue that an additional three years would allow Stockbridge sufficient time to develop a reasonable divestment plan based on the current circumstances that were unknown of when the original exemption was granted.

Gambling Control Act. The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice conducts background and field investigations and enforces the provisions of the Act in this regard.

Prior/Related Legislation

SB 356 (Yee, 2013) would have removed, under certain circumstances, the prohibition against obtaining a gambling license in California if the person, partner, officer, director, or shareholder has a financial interest in an organization engaged in a prohibited form of gambling either in or out of the state. (Held in the Assembly Appropriations Committee Suspense File)

SB 472 (Hill, Chapter 760, Statues of 2013) created a three-year licensing exemption for the owners of the Hollywood Park by authorizing CGCC to exempt specified limited partners in limited partnerships from specified licensing requirements.

AB 1290 (Hill, 2012) would have repealed existing laws regarding an exemption from licensing requirements for Hollywood Park.

AB 2526 (Hall, 2012) would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall, 2011) would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in the Assembly Governmental Organization Committee)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local: Yes

Unknown

SUPPORT: (Verified 8/12/16)

California Teamsters Public Affairs Council

Painters and Allied Trades, District Council 36

State Building and Construction Trades Council of California

Unite-Here, AFL-CIO

OPPOSITION: (Verified 8/12/16)

None received

ARGUMENTS IN SUPPORT: According to the State Building and Construction Trades Council of California, “the Hollywood Park site in Inglewood has been chosen for construction of a new, state of the art, NFL stadium. This addition, along with a 7,000 seat music venue will make this project a world class location in Southern California. Just as important, it will provide an estimated 30,000 new jobs, many of which will be good paying jobs in the construction industry, which our members are very excited about. We also understand that a construction project of this magnitude, while a tremendous economic driver for the region, will have a temporary impact on the business of the card club located directly adjacent to the overall project. This bill simply extends the current divestment period for an additional three years while the massive construction efforts are underway.”

ASSEMBLY FLOOR: 75-0, 4/14/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Irwin, Levine, McCarty, Melendez, Nazarian

Prepared by:

8/15/16 20:29:56

**** END ****

 CONSENT  

Bill No: AB 2218

Author:

:

Vote:

SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 6/28/16

AYES: Hall, Berryhill, Bates, Block, Gaines, Galgiani, Glazer, Hernandez, Hill, Hueso, Lara, McGuire, Vidak

ASSEMBLY FLOOR: 75-0, 4/14/16 - See last page for vote

SUBJECT:

SOURCE: Author

DIGEST: This bill extends from 45 to 60 days the time after receipt of an order by the California Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act, for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill extends from 45 to 60 days the time after receipt of an order by the CGCC within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author, “depending on an individual’s various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC.”

Gambling Control Act. The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice conducts background and field investigations and enforces the provisions of the Act in this regard.

Prior Legislation

AB 2526 (Hall, 2012) would have revised several definitions within the Act. Specifically, the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes, and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall, 2011) would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in the Assembly Governmental Organization Committee)

FISCAL EFFECT: Appropriation: Fiscal Com.: Local:

SUPPORT: (Verified 6/28/16)

None received

OPPOSITION: (Verified 6/28/16)

None received

ASSEMBLY FLOOR: 75-0, 4/14/16

AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Jones, Jones-Sawyer, Kim, Lackey, Linder, Lopez, Low, Maienschein, Mathis, Mayes, Medina, Mullin, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon

NO VOTE RECORDED: Irwin, Levine, McCarty, Melendez, Nazarian

Prepared by:

6/29/16 15:56:27

**** END ****

SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION

Senator Isadore Hall, III

Chair

2015 - 2016 Regular

Bill No: AB Hearing Date: 6/28/2016

SUBJECT:

DIGEST: This bill extends from 45 to 60 days the time after receipt of an order by the California Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

ANALYSIS:

Existing law:

1. Provides, under the Gambling Control Act, for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

This bill extends from 45 to 60 days the time after receipt of an order by the CGCC within which a person must apply for a gambling license or a finding of suitability.

Background

Purpose of the bill. According to the author, “depending on an individual’s various financial holdings, as well as other background, the documents required to be provided for a gaming license can be very significant and require much time and effort to provide. The purpose of this bill is to expand the timeframe that individuals have to file the application, to facilitate the most comprehensive supply of documents to the CGCC.”

Gambling Control Act. The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act requires every owner, lessee, or employee of a gambling establishment to obtain and maintain a valid state gambling license. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare.

The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any, reputation, habits and associations do not pose a threat to the public interest of this state. The DOJ conducts background and field investigations and enforces the provisions of the Act in this regard.

Prior/Related Legislation

AB 2526 (Hall, 2012) would have revised several definitions within the Act. Specifically the bill revised the definition of a "key employee," added surveillance managers and supervisors to the definition of "key employee" for licensing purposes and deleted the term "pit boss" and replaced the term "shift boss" to "shift manager." (Held on the inactive file on the Senate Floor)

AB 777 (Hall, 2011) would have required every person who is required to hold a state license to obtain the license before engaging in the activity or occupying the position with respect to which the license is requires, except as specified. (Never Heard in Assembly Governmental Organization Committee)

FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No

SUPPORT:

None received

OPPOSITION:

None received

ASSEMBLY THIRD READING

ATR Bill Id:AB 2218

Author:(Burke)

As Introduced Ver:

Majority vote

SUMMARY: Extends from 45 to 60 days the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

EXISTING LAW:

1. The Gambling Control Act (Act) provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGCC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

FISCAL EFFECT: Unknown. This bill is keyed non-fiscal by the Legislative Counsel.

COMMENTS:

Background: The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare. The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice

Bureau of Gambling Control (DOJ or Bureau) conducts background and field investigations and enforces the provisions of the Act in this regard.

Purpose of the bill: According to the author, current law authorizes the CGCC to require various employees of a card club or persons holding an interest in a card club to come forward for licensing. When the CGCC calls an individual forward to apply for a gaming license, that individual must file an application for licensing, including all of the background (including financial and other) information within 45 days.

By extending the timeline to 60 days, this bill allows individuals subject to licensing additional time to put together the most comprehensive document package possible, and ensures that the CGCC receives the most complete information from an applicant up front, which will assist the CGCC and Bureau in performing the necessary and thorough background investigations in as timely a fashion.

Prior/Related Legislation: SB 472 (Hill), Chapter 760, Statutes of 2013. Requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

AB 777 (Hall) of 2011-2012. Would have required every person who is required to hold a state gaming license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required. AB 777 died in the Assembly Governmental Organization Committee.

AB 2526 (Hall) of 2012. Would have changed several definitions within the Act, e.g., revised the definition of a "key employee" to any person employed in the operation of a gambling enterprise in a supervisory capacity or empowered to make discretionary decisions with regard to the gambling operations, and added surveillance managers and supervisors to the definition of "key employee" for licensing purposes, etc. AB 2526 died on the Senate Inactive File.)

SB 730 (Florez), Chapter 438, Statutes of 2007. Made various changes to the licensing and regulatory processes related to key employees for gambling establishments under the Act.

Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531 FN: 0002716

Date of Hearing: April 6, 2016

ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION

Adam Gray, Chair

ABPCA Bill Id:AB 2218 (

Author:Burke) – As Introduced Ver:February 18, 2016

SUBJECT: Gambling: licenses

SUMMARY: This bill extends from 45 to 60 days the time after receipt of an order by the Gambling Control Commission (CGCC) within which a person must apply for a gambling license or a finding of suitability.

EXISTING LAW:

1. The Gambling Control Act (Act) provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the CGCC.
2. Requires every person who is required to hold a state license to obtain the license prior to engaging in the activity or occupying the position with respect to which the license is required, except as specified.
3. Requires every person who, by order of the CGC, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

FISCAL EFFECT: Unknown

COMMENTS:

Background: The Act provides the CGCC with jurisdiction over the operation of gambling establishments in California. The Act assigns the CGCC the responsibility of assuring that gambling licenses are not issued to, or held by, unqualified or disqualified persons, or by persons whose operations are conducted in a manner that is harmful to the public health, safety, or welfare. The Act directs the CGCC to issue licenses only to those persons of good character, honesty and integrity, whose prior activities, criminal record, if any; reputation, habits and associations do not pose a threat to the public interest of this state. The Department of Justice

Bureau of Gambling Control (DOJ or Bureau) conducts background and field investigations and enforces the provisions of the Act in this regard.

Purpose of the bill: According to the author, current law authorizes the CGCC to require various employees of a card club or persons holding an interest in a card club to come forward for licensing. When the Commission calls an individual forward to apply for a gaming license, that individual must file an application for licensing, including all of the background (including financial and other) information within 45 days.

By extending the timeline to 60 days, AB 2218 allows individuals subject to licensing additional time to put together the most comprehensive document package possible, and ensures that the Commission receives the most complete information from an applicant up front, which will assist the CGCC and Bureau in performing the necessary and thorough background investigations in as timely a fashion.

Prior/Related Legislation: SB 472 (Hill) 2013-2014 Session Chapter 760, Statutes of 2013. Requires every person who, by order of the commission, is required to apply for a gambling license or a finding of suitability to file an application within 45 calendar days after receipt of the order.

AB 777 (Hall) 2011-2012 Session. Would have required every person who is required to hold a state gaming license to obtain the license before engaging in the activity or occupying the position with respect to which the license is required. (Not heard)

AB 2526 (Hall) 2011-2012 Session. Would have changed several definitions within the Gambling Control Act, e.g., revised the definition of a “key employee” to any person employed in the operation of a gambling enterprise in a supervisory capacity or empowered to make discretionary decisions with regard to the gambling operations, (2) added surveillance managers and supervisors to the definition of “key employee” for licensing purposes, etc. (Died, Senate Inactive File)

SB 730 (Florez), Chapter 438, Statutes of 2007. Made various changes to the licensing and regulatory processes related to key employees for gambling establishments under the Gambling Control Act.

REGISTERED SUPPORT / OPPOSITION:

Support

None on file

Opposition

None on file

Analysis Prepared by: Kenton Stanhope / G.O. / (916) 319-2531