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SB-1697 Gambling licenses.(2007-2008)

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SB1697:v96#DOCUMENT

Amended  IN  Assembly  August 18, 2008
Amended  IN  Senate  April 21, 2008
Amended  IN  Senate  April 14, 2008

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Senate Bill
No. 1697

Introduced  by  Senator Florez
 (Coauthor(s): Senator Negrete McLeod, Padilla)

February 22, 2008

An act to add Section 19851.5 to amend Section 19963 of, and to add Section 19851.5 to, the Business and Professions Code, relating to gambling.


LEGISLATIVE COUNSEL'S DIGEST


SB 1697, as amended, Florez. Gambling licenses: inactive status. licenses.
The Gambling Control Act provides for the licensure of certain individuals and establishments involved in various gambling activities, and for the regulation of those activities, by the California Gambling Control Commission. Existing law requires specified persons involved in those gambling activities to obtain and maintain gambling licenses or key employee licenses issued by the commission.
This bill would allow the holder of a gambling license or key employee license to petition request the commission to place that license on an inactive status for no more than 3 years. The bill would prohibit a licensee, while his or her license is inactive, from working in or operating a gambling establishment enterprise pursuant to the inactive license, and would specify that inactive status does prohibit the commission from taking disciplinary action against a licensee. The bill would require a licensee, in order to place a license on inactive status and maintain that status, to pay to the commission, each year, 50% of the license fee that would be required for an active license permit the commission to set a reduced annual fee for inactive licenses, and would require the commission to adopt regulations, as specified.
Existing law, until January 1, 2015, prohibits the commission from issuing a gambling license for a gambling establishment that was not licensed to operate on December 31, 1999, except as specified.
This bill would instead prohibit the commission from issuing a gambling license for a gambling establishment unless that establishment was licensed by the commission to operate on December 31, 2004, except as specified. The bill would require any application submitted to the commission after January 1, 2009, by a person eligible to apply for a gambling license for the purpose of reopening a closed establishment meeting that requirement to be accompanied by a copy of a current local license for that establishment or a certified copy of a resolution adopted by the local governing body indicating that it is prepared to issue a local license for that particular applicant to reopen the establishment.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 19851.5 is added to the Business and Professions Code, to read:

19851.5.
 (a) The holder of a gambling license or key employee license may petition request the commission to place that license on an inactive status for no more than three years. While a license is inactive, the licensee shall not work in or operate a gambling establishment enterprise pursuant to the inactive license.

(b)In order to place a license on inactive status, and to maintain that status, a licensee shall pay to the commission, each year that the license is on inactive status, 50 percent of the license fee that would be required for an active license. Failure to pay this fee shall constitute grounds for revocation of the license.

(c)A licensee may place an inactive license on active status by petitioning the commission and paying the applicable fee for an active license.

(b) Notwithstanding Section 19951, the commission may set a reduced annual fee for inactive license status.
(c) The holder of an inactive license may request the commission to place that license on active status. However, an inactive status shall not preclude the commission from taking disciplinary or other administrative action against any licensee.
(d) The commission shall adopt regulations to implement this section, including, but not limited to, approval criteria, license term, and fees. The commission is not required to accept requests for inactive status prior to adoption of these regulations.

SEC. 2.

 Section 19963 of the Business and Professions Code is amended to read:

19963.
 (a) In addition to any other limitations on the expansion of gambling imposed by Section 19962 or any provision of this chapter, the commission may not issue a gambling license for a gambling establishment unless that establishment was not licensed by the commission to operate on December 31, 1999, unless an application to operate that establishment was on file with the department prior to September 1, 2000 2004. This section shall not preclude the licensing of the holder of, or a successor in interest to, a gambling establishment license issued that was included in the assets of a bankruptcy estate, provided that the bankruptcy petition was filed between December 31, 1999, and December 31, 2004, and the application for the license was filed with the commission before September 1, 2008.
(b) For gambling establishments that qualify for a license pursuant to subdivision (a), this section does not prohibit the licensing of a purchaser, heir, transferee, or other successor in interest to the licensed gambling enterprise, gambling establishment, or owner licensee, or the relocation of a gambling establishment within the same local jurisdiction.
(c) Notwithstanding Section 19964, an application submitted to the commission after January 1, 2009, by a person eligible to apply for a gambling license under subdivision (a) for the purpose of reopening a closed establishment shall be accompanied by one of the following:
(1) A copy of a current local license for that establishment.
(2) A certified copy of a resolution duly adopted by the governing body of the city, county, or city and county in which the establishment would be operated, clearly stating that the governing body is prepared to issue a local license to that particular applicant to reopen the closed establishment, contingent upon approval of the state application by the commission. The resolution shall clearly state that the particular applicant designated in the resolution is the only applicant deemed eligible for that license.

(b)

(d) This section shall remain in effect only until January 1, 2015, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2015, deletes or extends that date.