19850-19879
BUSINESS AND PROFESSIONS CODE
SECTION 19850-19879
19850. Every person who, either as owner, lessee, or employee,
whether for hire or not, either solely or in conjunction with others,
deals, operates, carries on, conducts, maintains, or exposes for
play any controlled game in this state, or who receives, directly or
indirectly, any compensation or reward, or any percentage or share of
the money or property played, for keeping, running, or carrying on
any controlled game in this state, shall apply for and obtain from
the commission, and shall thereafter maintain, a valid state gambling
license, key employee license, or work permit, as specified in this
chapter. In any criminal prosecution for violation of this section,
the punishment shall be as provided in Section 337j of the Penal
Code.
19850.5. Notwithstanding Section 19850 or any other provision of
law, this chapter shall apply to both of the following:
(a) The operation, regulation, and enforcement of remote caller
bingo, as defined in paragraph (1) of subdivision (t) of Section
326.3 of the Penal Code, to the extent expressly made applicable by
Section 326.3 of the Penal Code. No requirement contained in this
chapter shall apply to remote caller bingo unless expressly made
applicable by Section 326.3 of the Penal Code.
(b) The regulation of card-minding devices as provided in
subdivision (p) of Section 326.5 of the Penal Code, to the extent
expressly made applicable by Section 326.5 of the Penal Code. No
requirement contained in this chapter shall apply to card-minding
devices unless expressly made applicable by Section 326.5 of the
Penal Code.
19850.6. (a) In order to avoid delays in implementing the
California Remote Caller Bingo Act, including implementing remote
caller bingo, testing and certifying card-minding devices, and to
avoid disruption of fundraising efforts by nonprofit organizations,
the Legislature finds and declares that it is necessary to provide
the commission with a limited exemption from normal rulemaking
procedural requirements. The commission is directed to adopt
appropriate emergency regulations as soon as possible, the initial
regulatory action to be filed with the Office of Administrative Law
no later than May 1, 2009. It is the intent of the Legislature to
provide the commission with full authority and sufficient flexibility
to adopt all needed regulations. These regulations may be adopted in
a series of regulatory actions. Subsequent regulatory actions may
amend or repeal earlier regulatory actions, as necessary, to reflect
program experience and concerns of the regulated public.
(b) The commission shall adopt emergency regulations concerning
remote caller bingo and concerning card-minding devices no later than
May 1, 2009. The adoption, amendment, repeal, or readoption of a
regulation authorized by this section is deemed to address an
emergency, for purposes of Sections 11346.1 and 11349.6 of the
Government Code, and the commission is hereby exempted for this
purpose from the requirements of subdivision (b) of Section 11346.1
of the Government Code, but shall otherwise be subject to the review
and approval of the Office of Administrative Law.
(c) Notwithstanding any other law, all emergency regulations
adopted by the commission pursuant to this section before July 1,
2009, shall remain in effect until December 31, 2011, except to the
extent that the commission exercises its power to adopt, amend, or
repeal these regulations in whole or in part.
19851. (a) The owner of a gambling enterprise shall apply for and
obtain a state gambling license. The owner of a gambling enterprise
shall be known as the owner-licensee.
(b) Other persons who also obtain a state gambling license, as
required by this chapter, shall not receive a separate license
certificate, but the license of every such person shall be endorsed
on the license certificate that is issued to the owner of the
gambling enterprise.
19852. Except as provided in Section 19852.2, an owner of a
gambling enterprise that is not a natural person shall not be
eligible for a state gambling license unless each of the following
persons individually applies for and obtains a state gambling
license:
(a) If the owner is a corporation, then each officer, director,
and shareholder, other than a holding or intermediary company, of the
owner. The foregoing does not apply to an owner that is either a
publicly traded racing association or a qualified racing association.
(b) If the owner is a publicly traded racing association, then
each officer, director, and owner, other than an institutional
investor, of 5 percent or more of the outstanding shares of the
publicly traded corporation.
(c) If the owner is a qualified racing association, then each
officer, director, and shareholder, other than an institutional
investor, of the subsidiary corporation and any owner, other than an
institutional investor, of 5 percent or more of the outstanding
shares of the publicly traded corporation.
(d) If the owner is a partnership, then every general and limited
partner of, and every trustee or person, other than a holding or
intermediary company, having or acquiring a direct or beneficial
interest in, that partnership owner.
(e) If the owner is a trust, then the trustee and, in the
discretion of the commission, any beneficiary and the trustor of the
trust.
(f) If the owner is a limited liability company, every officer,
manager, member, or owner.
(g) If the owner is a business organization other than a
corporation, partnership, trust, or limited liability company, then
all those persons as the commission may require, consistent with this
chapter.
(h) Each person who receives, or is to receive, any percentage
share of the revenue earned by the owner from gambling activities.
(i) Every employee, agent, guardian, personal representative,
lender, or holder of indebtedness of the owner who, in the judgment
of the commission, has the power to exercise a significant influence
over the gambling operation.
19852.2. (a) Notwithstanding Section 19852 or any other provision
of law to the contrary, and solely for the purpose of the licensure
of a card club located on the grounds of a racetrack that is owned by
a limited partnership that also owns the racetrack, the commission,
in its discretion, may exempt from the licensing requirements of this
chapter:
(1) The limited partners in a limited partnership that holds
interest in a holding company if all of the following criteria are
met:
(A) The limited partners of the limited partnership in the
aggregate directly hold at least 95 percent of the interest in the
holding company.
(B) The limited partner is one of the following:
(i) An "institutional investor" as defined in subdivision (s) of
Section 19805.
(ii) An "employee benefit plan" as defined in Section 1002(3) of
Title 29 of the United States Code.
(iii) An investment company that manages a state university
endowment.
(2) Other limited partners in a limited partnership described in
paragraph (1), if the partners do not number more than five and each
partner indirectly owns one percent or less of the shares of the
interest in the holding company.
(3) A limited partner in a limited partnership that holds in the
aggregate less than 5 percent of the interest in a holding company.
(b) Nothing in this section shall be construed to limit the
licensure requirements for a general partner of a limited partnership
or a limited partner that is not specifically described in this
section.
19853. (a) The commission, by regulation or order, may require that
the following persons register with the commission, apply for a
finding of suitability as defined in subdivision (i) of Section
19805, or apply for a gambling license:
(1) Any person who furnishes any services or any property to a
gambling enterprise under any arrangement whereby that person
receives payments based on earnings, profits, or receipts from
controlled gambling.
(2) Any person who owns an interest in the premises of a licensed
gambling establishment or in real property used by a licensed
gambling establishment.
(3) Any person who does business on the premises of a licensed
gambling establishment.
(4) Any person who is an independent agent of, or does business
with, a gambling enterprise as a ticket purveyor, a tour operator,
the operator of a bus program, or the operator of any other type of
travel program or promotion operated with respect to a licensed
gambling establishment.
(5) Any person who provides any goods or services to a gambling
enterprise for compensation that the commission finds to be grossly
disproportionate to the value of the goods or services provided.
(6) Every person who, in the judgment of the commission, has the
power to exercise a significant influence over the gambling
operation.
(b) The department may conduct any investigation it deems
necessary to determine whether a publicly traded corporation is, or
has, engaged in activities specified in paragraph (2), (3), or (4) of
subdivision (a), and shall report its findings to the commission. If
a publicly traded corporation is engaged in activities described in
paragraph (2), (3), or (4) of subdivision (a), the commission may
require the corporation and the following other persons to apply for
and obtain a license or finding of suitability:
(1) Any officer or director.
(2) Any owner, other than an institutional investor, of 5 percent
or more of the outstanding shares of the corporation.
19854. (a) Every key employee shall apply for and obtain a key
employee license.
(b) No person may be issued a key employee license unless the
person would qualify for a state gambling license.
(c) A key employee license shall entitle the holder to work as a
key employee in any key employee position at any gambling
establishment, provided that the key employee terminates employment
with one gambling establishment before commencing work for another.
(d) The commission shall establish a program for portable personal
licenses for key employees, as well as a process by which valid key
employee licenses then in effect shall be converted to personal
portable licenses. The commission may, as part of that process,
establish a fee to be paid by a key employee when seeking a personal
portable license. The commission shall seek to implement the
requirements imposed by this subdivision on or before July 1, 2008.
19855. Except as otherwise provided by statute or regulation, every
person who, by statute or regulation, is required to hold a state
license shall obtain the license prior to engaging in the activity or
occupying the position with respect to which the license is
required. Every person who, by order of the commission, is required
to apply for a gambling license or a finding of suitability shall
file the application within 30 calendar days after receipt of the
order.
19856. (a) Any person who the commission determines is qualified to
receive a state license, having due consideration for the proper
protection of the health, safety, and general welfare of the
residents of the State of California and the declared policy of this
state, may be issued a license. The burden of proving his or her
qualifications to receive any license is on the applicant.
(b) An application to receive a license constitutes a request for
a determination of the applicant's general character, integrity, and
ability to participate in, engage in, or be associated with,
controlled gambling.
(c) In reviewing an application for any license, the commission
shall consider whether issuance of the license is inimical to public
health, safety, or welfare, and whether issuance of the license will
undermine public trust that the gambling operations with respect to
which the license would be issued are free from criminal and
dishonest elements and would be conducted honestly.
19857. No gambling license shall be issued unless, based on all of
the information and documents submitted, the commission is satisfied
that the applicant is all of the following:
(a) A person of good character, honesty, and integrity.
(b) A person whose prior activities, criminal record, if any,
reputation, habits, and associations do not pose a threat to the
public interest of this state, or to the effective regulation and
control of controlled gambling, or create or enhance the dangers of
unsuitable, unfair, or illegal practices, methods, and activities in
the conduct of controlled gambling or in the carrying on of the
business and financial arrangements incidental thereto.
(c) A person that is in all other respects qualified to be
licensed as provided in this chapter.
19858. (a) Except as provided in subdivision (b), a person shall be
deemed to be unsuitable to hold a state gambling license to own a
gambling establishment if the person, or any partner, officer,
director, or shareholder of the person, has any financial interest in
any business or organization that is engaged in any form of gambling
prohibited by Section 330 of the Penal Code, whether within or
without this state.
(b) Subdivision (a) does not apply to a publicly traded racing
association, a qualified racing association, or any person who is
licensed pursuant to subdivision (b) or (c) of Section 19852.
19858.5. Notwithstanding Section 19858, the commission may,
pursuant to this chapter, deem an applicant or licensee suitable to
hold a state gambling license even if the applicant or licensee has a
financial interest in another business that conducts lawful gambling
outside the state that, if conducted within California, would be
unlawful, provided that an applicant or licensee may not own, either
directly or indirectly, more than a 1 percent interest in, or have
control of, that business.
19859. The commission shall deny a license to any applicant who is
disqualified for any of the following reasons:
(a) Failure of the applicant to clearly establish eligibility and
qualification in accordance with this chapter.
(b) Failure of the applicant to provide information,
documentation, and assurances required by this chapter or requested
by the chief, or failure of the applicant to reveal any fact material
to qualification, or the supplying of information that is untrue or
misleading as to a material fact pertaining to the qualification
criteria.
(c) Conviction of a felony, including a conviction by a federal
court or a court in another state for a crime that would constitute a
felony if committed in California.
(d) Conviction of the applicant for any misdemeanor involving
dishonesty or moral turpitude within the 10-year period immediately
preceding the submission of the application, unless the applicant has
been granted relief pursuant to Section 1203.4, 1203.4a, or 1203.45
of the Penal Code; provided, however, that the granting of relief
pursuant to Section 1203.4, 1203.4a, or 1203.45 of the Penal Code
shall not constitute a limitation on the discretion of the commission
under Section 19856 or affect the applicant's burden under Section
19857.
(e) Association of the applicant with criminal profiteering
activity or organized crime, as defined by Section 186.2 of the Penal
Code.
(f) Contumacious defiance by the applicant of any legislative
investigatory body, or other official investigatory body of any state
or of the United States, when that body is engaged in the
investigation of crimes relating to gambling; official corruption
related to gambling activities; or criminal profiteering activity or
organized crime, as defined by Section 186.2 of the Penal Code.
(g) The applicant is less than 21 years of age.
19860. (a) The commission shall deny a gambling license with
respect to any gambling establishment that is located in a city,
county, or city and county that does not have an ordinance governing
all of the following matters:
(1) The hours of operation of gambling establishments.
(2) Patron security and safety in and around the gambling
establishments.
(3) The location of gambling establishments.
(4) Wagering limits in gambling establishments.
(5) The number of gambling tables in each gambling establishment
and in the jurisdiction.
(b) In any city, county, or city and county in which the local
gambling ordinance does not govern the matters specified in
subdivision (a), any amendment to the ordinance to govern those
matters is not subject to Section 19961, provided that a local
election is required to add these matters, and the ordinance only
provides for private clubs by vote of the people, and that the
ordinance is amended to contain these matters on or before July 1,
2000.
19861. Notwithstanding subdivision (i) of Section 19801, the
commission shall not deny a license to a gambling establishment
solely because it is not open to the public, provided that all of the
following are true: (a) the gambling establishment is situated in a
local jurisdiction that has an ordinance allowing only private clubs,
and the gambling establishment was in operation as a private club
under that ordinance on December 31, 1997, and met all applicable
state and local gaming registration requirements; (b) the gambling
establishment consists of no more than five gaming tables; (c) video
recordings of the entrance to the gambling room or rooms and all
tables situated therein are made during all hours of operation by
means of closed-circuit television cameras, and these recordings are
retained for a period of 30 days and are made available for review by
the department or commission upon request; and (d) the gambling
establishment is open to members of the private club and their
spouses in accordance with membership criteria in effect as of
December 31, 1997.
A gambling establishment meeting these criteria, in addition to
the other requirements of this chapter, may be licensed to operate as
a private club gambling establishment until November 30, 2003, or
until the ownership or operation of the gambling establishment
changes from the ownership or operation as of January 1, 1998,
whichever occurs first. Operation of the gambling establishments
after this date shall only be permitted if the local jurisdiction
approves an ordinance, pursuant to Sections 19961 and 19962,
authorizing the operation of gambling establishments that are open to
the public. The commission shall adopt regulations implementing this
section. Prior to the commission's issuance of a license to a
private club, the department shall ensure that the ownership of the
gambling establishment has remained constant since January 1, 1998,
and the operation of the gambling establishment has not been leased
to any third party.
19862. (a) In addition to other grounds stated in this chapter, the
commission may deny a gambling license for any of the following
reasons:
(1) If issuance of the license with respect to the proposed
gambling establishment or expansion would tend unduly to create law
enforcement problems in a city, county, or city and county other than
the city, county, or city and county that has regulatory
jurisdiction over the applicant's premises.
(2) If an applicant fails to conduct an economic feasibility study
that demonstrates to the satisfaction of the commission that the
proposed gambling establishment will be economically viable, and that
the owners have sufficient resources to make the gambling
establishment successful. The commission shall hold a public hearing
for the purpose of reviewing the feasibility study. All papers,
studies, projections, pro formas, and other materials filed with the
commission pursuant to an economic feasibility study are public
records and shall be disclosed to all interested parties.
(3) If issuance of the license is sought in respect to a new
gambling establishment, or the expansion of an existing gambling
establishment, that is to be located or is located near an existing
school, an existing building used primarily as a place of worship, an
existing playground or other area of juvenile congregation, an
existing hospital, convalescence facility, or near another similarly
unsuitable area, as determined by regulation of the commission, which
is located in a city, county, or city and county other than the
city, county, or city and county that has regulatory jurisdiction
over the applicant's gambling premises.
(b) For the purposes of this section, "expansion" means an
increase of 25 percent or more in the number of authorized gambling
tables in a gambling establishment, based on the number of gambling
tables for which a license was initially issued pursuant to this
chapter.
19863. A publicly traded racing association or a qualified racing
association shall be allowed to operate only one gaming
establishment, and the gaming establishment shall be located on the
same premises as the entity's racetrack.
19864. (a) Application for a state license or other commission
action shall be made on forms furnished by the commission.
(b) The application for a gambling license shall include all of
the following:
(1) The name of the proposed licensee.
(2) The name and location of the proposed gambling establishment.
(3) The gambling games proposed to be conducted.
(4) The names of all persons directly or indirectly interested in
the business and the nature of the interest.
(5) A description of the proposed gambling establishment and
operation.
(6) Any other information and details the commission may require
in order to discharge its duty properly.
19865. The department shall furnish to the applicant supplemental
forms, which the applicant shall complete and file with the
department. These supplemental forms shall require, but shall not be
limited to requiring, complete information and details with respect
to the applicant's personal history, habits, character, criminal
record, business activities, financial affairs, and business
associates, covering at least a 10-year period immediately preceding
the date of filing of the application. Each applicant shall submit
two sets of fingerprints, using "live scan" or other prevailing,
accepted technology, or on forms provided by the department. The
department may submit one fingerprint card to the United States
Federal Bureau of Investigation.
19866. An applicant for licensing or for any approval or consent
required by this chapter, shall make full and true disclosure of all
information to the department and the commission as necessary to
carry out the policies of this state relating to licensing,
registration, and control of gambling.
19867. (a) An application for a license or a determination of
suitability shall be accompanied by the deposit of a sum of money
that, in the judgment of the chief, will be adequate to pay the
anticipated costs and charges incurred in the investigation and
processing of the application. The chief shall adopt a schedule of
costs and charges of investigation for use as guidelines in fixing
the amount of any required deposit under this section. The schedule
shall distinguish between initial and renewal licenses with respect
to costs and charges.
(b) During an investigation, the chief may require an applicant to
deposit any additional sums as are required by the department to pay
final costs and charges of the investigation.
(c) Any money received from an applicant in excess of the costs
and charges incurred in the investigation or the processing of the
application shall be refunded pursuant to regulations adopted by the
department. At the conclusion of the investigation, the chief shall
provide the applicant a written, itemized accounting of the costs and
charges thereby incurred.
19868. (a) Within a reasonable time after the filing of an
application and any supplemental information the department may
require, and the deposit of any fee required pursuant to Section
19867, the department shall commence its investigation of the
applicant and, for that purpose, may conduct any proceedings it deems
necessary. To the extent practicable, all applications shall be
acted upon within 180 calendar days of the date of submission of a
completed application. If an investigation has not been concluded
within 180 days after the date of submission of a completed
application, the department shall inform the applicant in writing of
the status of the investigation and shall also provide the applicant
with an estimated date on which the investigation may reasonably be
expected to be concluded.
(b) If denial of the application, or approval of the license with
restrictions or conditions on the license, is recommended, the chief
shall prepare and file with the commission his or her written reasons
upon which the recommendation is based.
(1) Prior to filing his or her recommendation with the commission,
the chief shall meet with the applicant, or the applicant's duly
authorized representative, and inform him or her generally of the
basis for any proposed recommendation that the application be denied,
restricted, or conditioned.
(2) Not less than 10 business days prior to the meeting of the
commission at which the application is to be considered, the
department shall deliver to the applicant a summary of the chief's
final report and recommendation.
(3) This section requires the department neither to divulge to the
applicant any confidential information received from any law
enforcement agency or any information received from any person with
assurances that the information would be maintained confidential, nor
to divulge any information that might reveal the identity of any
informer or jeopardize the safety of any person.
(c) If a restriction or condition on the license is recommended,
the chief shall prepare and file with the commission his or her
written reasons upon which the recommendation is based.
(1) Prior to filing his or her recommendation with the commission,
and not less than 10 business days prior to the meeting of the
commission at which the application is to be considered, the chief
shall inform the applicant in writing generally of the basis for any
proposed recommendation that the application be restricted or
conditioned, including the legal and factual grounds on which the
recommendation is based.
(2) This section does not require the department to divulge to the
applicant any confidential information received from any law
enforcement agency or any information received from any person with
assurances that the information would be maintained confidential, or
to divulge any information that might reveal the identity of any
informer or jeopardize the safety of any person.
(d) A recommendation of denial of an application shall be without
prejudice to a new and different application filed in accordance with
applicable regulations.
19869. A request for withdrawal of any application may be made at
any time prior to final action upon the application by the chief by
the filing of a written request to withdraw with the commission. For
the purposes of this section, final action by the department means a
final determination by the chief regarding his or her recommendation
on the application to the commission. The commission shall not grant
the request unless the applicant has established that withdrawal of
the application would be consistent with the public interest and the
policies of this chapter. If a request for withdrawal is denied, the
department may go forward with its investigation and make a
recommendation to the commission upon the application, and the
commission may act upon the application as if no request for
withdrawal had been made. If a request for withdrawal is granted with
prejudice, the applicant thereafter shall be ineligible to renew its
application until the expiration of one year from the date of the
withdrawal. Unless the commission otherwise directs, no fee or other
payment relating to any application is refundable by reason of
withdrawal of an application.
19870. (a) The commission, after considering the recommendation of
the chief and any other testimony and written comments as may be
presented at the meeting, or as may have been submitted in writing to
the commission prior to the meeting, may either deny the application
or grant a license to an applicant who it determines to be qualified
to hold the license.
(b) When the commission grants an application for a license or
approval, the commission may limit or place restrictions thereon as
it may deem necessary in the public interest, consistent with the
policies described in this chapter.
(c) When an application is denied, the commission shall prepare
and file a detailed statement of its reasons for the denial.
(d) All proceedings at a meeting of the commission relating to a
license application shall be recorded stenographically or by audio or
video recording.
(e) A decision of the commission denying a license or approval, or
imposing any condition or restriction on the grant of a license or
approval may be reviewed by petition pursuant to Section 1085 of the
Code of Civil Procedure. Section 1094.5 of the Code of Civil
Procedure shall not apply to any judicial proceeding described in the
foregoing sentence, and the court may grant the petition only if the
court finds that the action of the commission was arbitrary and
capricious, or that the action exceeded the commission's
jurisdiction.
19871. (a) The commission meeting described in Section 19870 shall
be conducted in accordance with regulations of the commission and as
follows:
(1) Oral evidence shall be taken only upon oath or affirmation.
(2) Each party shall have all of the following rights:
(A) To call and examine witnesses.
(B) To introduce exhibits relevant to the issues of the case.
(C) To cross-examine opposing witnesses on any matters relevant to
the issues, even though the matter was not covered on direct
examination.
(D) To impeach any witness, regardless of which party first called
the witness to testify.
(E) To offer rebuttal evidence.
(3) If the applicant does not testify in his or her own behalf, he
or she may be called and examined as if under cross-examination.
(4) The meeting need not be conducted according to technical rules
relating to evidence and witnesses. Any relevant evidence may be
considered, and is sufficient in itself to support a finding, if it
is the sort of evidence on which responsible persons are accustomed
to rely in the conduct of serious affairs, regardless of the
existence of any common law or statutory rule that might make
improper the admission of that evidence over objection in a civil
action.
(b) Nothing in this section confers upon an applicant a right to
discovery of the department's investigative reports or to require
disclosure of any document or information the disclosure of which is
otherwise prohibited by any other provision of this chapter.
19872. (a) No member of the commission may communicate ex parte,
directly or indirectly, with any applicant, or any agent,
representative, or person acting on behalf of an applicant, upon the
merits of an application for a license, permit, registration, or
approval while the application is pending disposition before the
department or the commission.
(b) No applicant, or any agent, representative, or person acting
on behalf of an applicant, and no person who has a direct or indirect
interest in the outcome of a proceeding to consider an application
for a license, permit, registration, or approval may communicate ex
parte, directly or indirectly, with any member of the commission,
upon the merits of the application while the application is pending
disposition before the department.
(c) No employee or agent of the department, applicant, or any
agent, representative, or person acting on behalf of an applicant,
and no person who has a direct or indirect interest in the outcome of
a proceeding to consider an application for a license, permit,
registration, or approval may communicate ex parte, directly or
indirectly, with any member of the commission, upon the merits of the
application, while the application is pending disposition before the
commission.
(d) The receipt by a member of the commission of an ex parte
communication prohibited by this section may provide the basis for
disqualification of that member or the denial of the application. The
commission shall adopt regulations to implement this subdivision.
(e) For the purposes of this subdivision, "ex parte" means a
communication without notice and opportunity for all parties to
participate in the communication.
(f) Nothing in this section precludes a communication made on the
record at a public hearing on a properly agendized matter.
19873. No license may be assigned or transferred either in whole or
in part.
19874. Subject to subdivision (b) of Section 19851, the commission
shall issue and deliver to the applicant a license entitling the
applicant to engage in the activity for which the license is issued,
together with an enumeration of any specific terms and conditions of
the license if both of the following conditions have been met:
(a) The commission is satisfied that the applicant is eligible and
qualified to receive the license.
(b) All license fees required by statute and by regulations of the
commission have been paid.
19875. An owner's gambling license shall be posted at all times in
a conspicuous place in the area where gambling is conducted in the
establishment for which the license is issued until it is replaced by
a succeeding license.
19876. (a) Subject to the power of the commission to deny, revoke,
suspend, condition, or limit any license, as provided in this
chapter, a license shall be renewed biennially.
(b) An application for renewal of a gambling license shall be
filed by the owner licensee or key employee with the commission no
later than 120 calendar days prior to the expiration of the current
license. The commission shall act upon any application for renewal
prior to the date of expiration of the current license. Upon renewal
of any owner license, the commission shall issue an appropriate
renewal certificate or validating device or sticker.
(c) Notwithstanding the provisions of subdivision (b), if an owner
licensee has submitted an application for renewal prior to the
original expiration date of the current license and the commission is
unable to act on the application prior to the expiration date, the
commission may extend the current license for up to 180 days.
(d) Unless the commission determines otherwise, renewal of an
owner's gambling license shall be deemed to effectuate the renewal of
every other gambling license endorsed thereon.
(e) In addition to the penalties provided by law, any owner
licensee who deals, operates, carries on, conducts, maintains, or
exposes for play any gambling game after the expiration date of the
gambling license is liable to the state for all license fees and
penalties that would have been due upon renewal.
(f) If an owner licensee fails to renew the gambling license as
provided in this chapter, the commission may order the immediate
closure of the premises and a cessation of all gambling activity
therein until the license is renewed.
(g) If an owner licensee submits an application for renewal of the
gambling license after the deadline set in subdivision (b) but
before the original expiration date of the license, the commission
may assess reasonable delinquency fees not to exceed three times the
usual application fee.
19877. The failure of an owner licensee to file an application for
renewal before the date specified in this chapter may be deemed a
surrender of the license. A license has not been renewed within the
meaning of this section until all required renewal fees have been
paid.
19878. (a) Neither an owner licensee, nor a California affiliate of
an owner licensee, shall enter into, without prior approval of the
commission, any contract or agreement with a person who is denied a
license, or whose license is suspended or revoked by the commission,
or with any business enterprise under the control of that person,
after the date of receipt of notice of the commission's action.
(b) An owner licensee or an affiliate of the owner licensee shall
not employ, without prior approval of the commission, any person in
any capacity for which he or she is required to be licensed, if the
person has been denied a license, or if his or her license has been
suspended or revoked after the date of receipt of notice of the
action by the commission. Neither an owner licensee, nor a California
affiliate of an owner licensee, without prior approval of the
commission, shall enter into any contract or agreement with a person
whose application has been withdrawn with prejudice, or with any
business enterprise under the control of that person, for the period
of time during which the person is prohibited from filing a new
application for licensure.
(c) (1) If an employee who is required to be licensed pursuant to
this chapter fails to apply for a license within the time specified
by regulation, is denied a license, or has his or her license revoked
by the commission, the employee shall be terminated in any capacity
in which he or she is required to be licensed and he or she shall not
be permitted to exercise a significant influence over the gambling
operation, or any part thereof, upon being notified of that action.
(2) If an employee who is required to be licensed pursuant to this
chapter has his or her license suspended, the employee shall be
suspended in any capacity in which he or she is required to be
licensed and shall not be permitted to exercise a significant
influence over the gambling operation, or any part thereof, during
the period of suspension, upon being notified of that action.
(3) If the owner licensee designates another employee to replace
the employee whose employment was terminated, the owner licensee
shall promptly notify the department and shall require the newly
designated employee to apply for a license.
(d) An owner licensee or an affiliate of the owner licensee shall
not pay to a person whose employment has been terminated pursuant to
subdivision (c) any remuneration for any service performed in any
capacity in which the person is required to be licensed except for
amounts due for services rendered before the date of receipt of
notice of the commission's action. Neither an owner licensee, nor an
affiliate thereof, during the period of suspension, shall pay to a
person whose employment has been suspended pursuant to subdivision
(c), any remuneration for any service performed in any capacity in
which the person is required to be licensed, except for amounts due
for services rendered before the date of receipt of notice of the
commission's action.
(e) Except as provided in subdivision (c), a contract or agreement
for the provision of services or property to an owner licensee or an
affiliate thereof, or for the conduct of any activity at a gambling
establishment, which is to be performed by a person required by this
chapter or by regulations adopted pursuant to this chapter, to be
licensed, shall be terminated upon a suspension or revocation of the
person's license.
(f) In any case in which a contract or agreement for the provision
of services or property to an owner licensee or an affiliate
thereof, or for the conduct of any activity at a gambling
establishment, is to be performed by a person required by this
chapter or by regulations adopted by the commission to be licensed,
the contract shall be deemed to include a provision for its
termination without liability on the part of the owner licensee or
its duly registered holding company upon a suspension or revocation
of the person's license. In any action brought by the department or
commission to terminate a contract pursuant to subdivision (c) or
(e), it shall not be a defense that the agreement does not expressly
include the provision described in this subdivision, and the lack of
express inclusion of the provision in the agreement shall not be a
basis for enforcement of the contract by a party thereto.
19879. With regard to a person who has had his or her application
for a license denied by the commission, all of the following shall
apply:
(a) Except as provided in subdivision (c), the person shall not be
entitled to profit from his or her investment in any business entity
that has applied for or been granted a state license.
(b) The person shall not retain his or her interest in a business
entity described in subdivision (a) beyond that period prescribed by
the commission.
(c) The person shall not accept more for his or her interest in a
business entity described in subdivision (a) than he or she paid for
it, or the market value on the date of the denial of the license or
registration, whichever is higher.
(d) Nothing in this section shall be construed as a restriction or
limitation on the powers of the commission specified in this
chapter.