The Gambling Control ActRevenues

Section § 19950

Explanation

Money collected from fines and penalties related to this chapter goes into a special account in the state's General Fund. The Department of Justice can use this money, once the Legislature approves, to cover costs associated with this chapter. However, other fees and revenue go into the Gambling Control Fund, which supports the department and commission's work on gambling regulations.

(a)CA Business & Professions Code § 19950(a) All fines and penalties collected pursuant to this chapter shall be deposited in a special account in the General Fund, and, upon appropriation, may be expended by the Department of Justice to offset costs incurred pursuant to this chapter.
(b)CA Business & Professions Code § 19950(b) Except as otherwise provided in subdivision (a), all fees and revenue collected pursuant to this chapter shall be deposited in the Gambling Control Fund, which is hereby created in the State Treasury. The funds deposited in the Gambling Control Fund shall be available, upon appropriation by the Legislature, for expenditure by the department and commission exclusively for the support of the department and commission in carrying out their duties and responsibilities under this chapter.
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Section § 19951

Explanation

This section is about the fees required for obtaining a gambling license in California. When applying for a license, a fee, set by the commission but capped at $1,200, must be included. The fees collected for various licenses, including the initial issuance and renewal, cover the costs of regulating gambling operations. Beginning January 1, 2023, the commission must report to the Legislature every two years on fee calculation, showing how these fees are determined based on factors like licensee revenues and regulatory costs. The goal is to ensure that the fees are enough to fund regulatory activities without exceeding necessary expenditures.

(a)CA Business & Professions Code § 19951(a) Every application for a license or approval shall be accompanied by a fee as determined by the commission and adopted by regulation. The adopted fee shall not exceed one thousand two hundred dollars ($1,200).
(b)Copy CA Business & Professions Code § 19951(b)
(1)Copy CA Business & Professions Code § 19951(b)(1) Any fee paid pursuant to this section, including all licenses issued to key employees and other persons whose names are endorsed upon the license, shall be assessed against the gambling license issued to the owner of the gambling establishment. This paragraph shall not apply to key employee licenses issued on and after January 1, 2009, or the implementation of regulations establishing a personal key employee license adopted pursuant to Section 19854, whichever is sooner.
(2)Copy CA Business & Professions Code § 19951(b)(2)
(A)Copy CA Business & Professions Code § 19951(b)(2)(A) The fee for initial issuance of a state gambling license shall be an amount determined by the commission in accordance with regulations adopted pursuant to this chapter.
(B)CA Business & Professions Code § 19951(b)(2)(A)(B) The fee for the renewal of a state gambling license shall be an amount determined by the commission in accordance with regulations adopted pursuant to this chapter.
(c)CA Business & Professions Code § 19951(c) The department may provide for payment of the annual gambling license fee on an annual or installment basis.
(d)CA Business & Professions Code § 19951(d) It is the intent of the Legislature that the fees paid pursuant to this section are sufficient to enable the department and the commission to fully carry out their duties and responsibilities under this chapter.
(e)CA Business & Professions Code § 19951(e) The amount of fees collected pursuant to this section shall be limited to the reasonable regulatory expenditures of the department and the commission to administer this chapter.
(f)Copy CA Business & Professions Code § 19951(f)
(1)Copy CA Business & Professions Code § 19951(f)(1) Beginning January 1, 2023, and every two years thereafter, the commission shall provide a report to the appropriate budget and policy committees of the Legislature detailing the fee levels established by the commission through regulations.
(2)CA Business & Professions Code § 19951(f)(2) The report required by this subdivision shall describe how fees for each licensing category were calculated, including how licensee gross revenues and state regulatory costs were used in the calculation. If a workload-based methodology is used to establish fees, the commission shall include in its report a breakdown of the personnel cost, operating cost, and overhead cost figures used to determine fee levels.
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Section § 19952

Explanation

The law allows for the creation of special licenses, which let gambling establishments temporarily operate more tables than normally allowed. This can be done for tournaments or special events, and the fees for these licenses will be set by the commission through regulations.

The commission, by regulation, shall establish fees for special licenses authorizing irregular operation of tables in excess of the total number of tables otherwise authorized to a licensed gambling establishment, for tournaments and other special events.
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Section § 19953

Explanation

This section makes it clear that cities and counties in California can still decide on their own how to set, apply, and collect their license taxes, without being limited by the rules in this chapter.

Nothing contained in this chapter shall be deemed to restrict or limit the power of any city, county, or city and county to fix, impose, and collect a license tax.
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Section § 19954

Explanation

This law says that every gambling business must pay an extra $100 for each table they have, beyond their regular fees. This money goes to the State Department of Public Health and is put into a special fund called the Gambling Addiction Program Fund. The fund helps people with gambling problems by giving money to local organizations that support these individuals. The money can be used by these organizations after the state government approves it.

In addition to those fees required pursuant to Section 19951, each licensee shall pay an additional one hundred dollars ($100) for each table for which it is licensed to the State Department of Public Health for deposit in the Gambling Addiction Program Fund, which is hereby established to benefit those who have a gambling addiction problem. These funds shall be made available, upon appropriation by the Legislature, to community-based organizations that directly provide aid and assistance to those persons with a gambling addiction problem.
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Section § 19955

Explanation

If a gambling business doesn't pay its annual fees on time, it might have to close for up to 90 days. If the fees are still not paid after this period, the business will lose its state gambling license.

If an owner licensee fails to make timely payment of annual fees required under subparagraph (B) of paragraph (2) of subdivision (b) of Section 19951, the commission may order the temporary closure of the gambling establishment for up to 90 days after the payment due date, after which time, if the fees, or any portion thereof, remain unpaid, the gambling establishment’s state gambling license shall be deemed surrendered.
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