19809.  There is within the Department of Justice the Division of
Gambling Control as provided in Section 15001 of the Government Code.
  Except as otherwise provided in this chapter, any power or
authority of the division described in this chapter may be exercised
by the Attorney General or such other person as the Attorney General
may delegate.



19810A.  (a) There is in state government the California Gambling
Control Commission, consisting of five members appointed by the
Governor, subject to confirmation by the Senate.  On the effective
date of this section, the California Gambling Control Commission
shall succeed to all of the powers of the California Gambling Control
Board, which is hereby abolished.  Wherever in this chapter
reference is made to the board, it shall be construed to mean the
commission.
   (b) Jurisdiction, including jurisdiction over operation and
concentration, and supervision over gambling establishments in this
state and over all persons or things having to do with the operations
of gambling establishments is vested in the commission.
   (c) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19811A.  (a) Each member of the commission shall be a citizen of the
United States and a resident of this state.
   (b) No Member of the Legislature, no person holding any elective
office in state, county, or local government, and no officer or
official of any political party is eligible for appointment to the
commission.
   (c) No more than three of the five members of the commission shall
be members of the same political party.
   (d) A person is ineligible for appointment to the commission if,
within two years prior to appointment, the person, or any partnership
or corporation in which the person is a principal, was employed by,
retained by, or derived substantial income from, any gambling
establishment.  For the purposes of this subdivision, "gambling
establishment" means one or more rooms wherein any gaming within the
meaning of Chapter 10 (commencing with Section 330) of Title 9 of
Part 1 of the Penal Code, or any controlled game within the meaning
of Section 337j of the Penal Code, is conducted, whether or not the
activity occurred in California.
   (e) One member of the commission shall be a certified public
accountant with auditing experience, one member shall be an attorney
and a member of the State Bar of California with regulatory law
experience, one member shall have a background in law enforcement and
criminal investigation, one member shall have a background in
business with at least five years of business experience, and one
member shall be from the public at large.
   (f) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19812A.  (a) Of the members initially appointed, two shall be
appointed for a term of two years, two shall be appointed for a term
of three years, and one shall be appointed for a term of four years.
After the initial terms, the term of office of each member of the
board is four years.
   (b) The Governor shall appoint the members of the commission,
subject to confirmation by the Senate, and shall designate one member
to serve as chairperson.  The initial appointments shall be made
within three months of the operative date of this section.
Thereafter, vacancies shall be filled within 60 days of the date of
the vacancy by the Governor, subject to confirmation by the Senate.
   (c) The Governor may remove any member of the commission for
incompetence, neglect of duty, or corruption upon first giving him or
her a copy of the charges and an opportunity to be heard.
   (d) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19813A.  (a) During their terms of office, the members of the
commission shall not engage in any other business, vocation, or
employment.
   (b) Before entering upon the duties of his or her office, the
director and each member of the commission shall subscribe to the
constitutional oath of office and, in addition, swear that he or she
is not, and during his or her term of office shall not be,
pecuniarily interested in, or doing business with, any person,
business, or organization holding a gambling license.
   (c) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19814A.  (a) The director and the members of the commission shall
receive the salary provided for by Section 11553.5 of the Government
Code.
   (b) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.




19815.  (a) The board shall have an executive secretary appointed by
the board.  A person is ineligible for appointment as executive
secretary or deputy executive secretary if, within two years prior to
appointment, the person, or any partnership or corporation in which
the person is a principal, was employed by, retained by, or derived
substantial income from, any gambling establishment, whether or not a
controlled gambling establishment.
   (b) The executive secretary shall receive the annual salary
established by the board and approved by the Department of Personnel
Administration.  The executive secretary shall be the board's
executive officer and shall carry out and execute the duties as
specified by law and by the board and, for that purpose, the
executive secretary may appoint staff and clerical personnel.  It is
the intent of the Legislature that the employment of assistants and
clerical personnel as provided by this subdivision shall not be
accomplished by any reduction in the reasonably necessary staffing
level of the division.



19815.5A.  (a) The commission shall establish and appoint a Gaming
Policy Advisory Committee of 10 members.  The committee shall be
composed of representatives of controlled gambling licensees and
members of the general public in equal numbers.  The executive
secretary shall, from time to time, convene the committee for the
purpose of discussing matters of controlled gambling regulatory
policy and any other relevant gambling-related issue.  The
recommendations concerning gambling policy made by the committee
shall be presented to the commission, but shall be deemed advisory
and not binding on the commission in the performance of its duties or
functions.
   (b) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19815.8A.  (a) The commission shall investigate the following
matters:
   (1) The consequences, benefits, and disadvantages of imposing a
state tax on revenue generated by licensed gambling establishments.
   (2) Regulation of advertising for the purpose of limiting exposure
of children to materials promoting gambling.
   (b) The commission shall report its findings to the Legislature
and the Governor no later than January 1, 2000.
   (c) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19817A.  (a) The commission shall establish and maintain a general
office for the transaction of its business in Sacramento.  The
commission may hold meetings at any place within the state when the
interests of the public may be better served.
   (b) A public record of every vote shall be maintained at the
commission's general office.
   (c) A majority of the membership of the commission is a quorum of
the commission.  The concurring vote of three members of the
commission shall be required for any official action of the
commission or for the exercise of any of the commission's duties,
powers, or functions.
   (d) Except as otherwise provided in this chapter, Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code applies to meetings of the
commission.  Notwithstanding Section 11125.1 of the Government Code,
documents, which are filed with the commission by the division for
the purpose of evaluating the qualifications of an applicant, are
exempt from disclosure under Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code.
   (e) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19818A.  The commission may employ not more than eight attorneys.
Nothing herein shall be deemed to exempt the commission from the
operation of Section 11040, 11042, or 11043 of the Government Code.



19820A.  (a) The commission shall cause to be made and kept a record
of all proceedings at regular and special meetings of the
commission.  These records shall be open to public inspection.
   (b) The commission shall maintain a file of all applications for
licenses under this chapter, together with a record of all actions
taken with respect to those applications.  The file and record shall
be open to public inspection.
   (c) The division and commission may maintain any other files and
records as they deem appropriate.  Except as provided in this
chapter, the records of the division and commission are exempt from
disclosure from Chapter 3.5 (commencing with Section 6250) of
Division 7 of Title 1 of the Government Code.
   (d) Except as necessary for the administration of this chapter, no
commissioner and no official, employee, or agent of the commission
or the division, having obtained access to confidential records or
information in the performance of duties pursuant to this chapter,
shall knowingly disclose or furnish the records or information, or
any part thereof, to any person who is not authorized by law to
receive it.  A violation of this subdivision is a misdemeanor.
   (e) Notwithstanding subdivision (k) of Section 1798.24 of the
Civil Code, a court shall not compel disclosure of personal
information in the possession of the division or the commission to
any person in any civil proceeding wherein the division or the
commission is not a party, except for good cause and upon a showing
that the information cannot otherwise be obtained.  Nothing herein
shall be construed to authorize the disclosure of personal
information that would otherwise be exempt from disclosure.
   (f) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19821A.  (a) All files, records, reports, and other information in
possession of any state or local governmental agency that are
relevant to an investigation by the division conducted pursuant to
this chapter shall be made available to the division as requested.
However, any tax information received from a governmental agency
shall be used solely for effectuating the purposes of this chapter.
To the extent that the files, records, reports, or information
described in this section are confidential or otherwise privileged
from disclosure under any law or exercise of discretion, they shall
not lose that confidential or privileged status for having been
disclosed to the division.
   (b) All files, records, reports, and other information pertaining
to gambling matters in the possession of the division shall be open
at all times to inspection by the members of the commission.
   (c) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19822A.  (a) The responsibilities of the commission include, without
limitation, all of the following:
   (1) Assuring that licenses, approvals, and permits are not issued
to, or held by, unqualified or disqualified persons, or by persons
whose operations are conducted in a manner that is inimical to the
public health, safety, or welfare.
   (2) Assuring that there is no material involvement, directly or
indirectly, with a licensed gambling operation, or the ownership or
management thereof, by unqualified or disqualified persons, or by
persons whose operations are conducted in a manner that is inimical
to the public health, safety, or welfare.
   (b) For the purposes of this section, "unqualified person" means a
person who is found to be unqualified pursuant to the criteria set
forth in Section 19848, and "disqualified person" means a person who
is found to be disqualified pursuant to the criteria set forth in
Section 19850.
   (c) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.




19823.5.  The commission may require that any matter that the
commission is authorized or required to consider in a hearing or
meeting of an adjudicative nature regarding the denial, suspension,
or revocation of a license, permit, or a finding of suitability, be
heard and determined in accordance with Chapter 5 (commencing with
Section 11500) of Part 1 of Division 3 of Title  2 of the Government
Code.



19823A.  (a) The commission shall have all powers necessary and
proper to enable it fully and effectually to carry out the policies
and purposes of this chapter, including, without limitation, the
power to do all of the following:
   (1) Require any person to apply for a license or approval as
specified in this chapter.
   (2) For any cause deemed reasonable by the commission, deny any
application for a license, permit, or approval provided for in this
chapter, limit, condition, or restrict any license, permit, or
approval, or impose any fine upon any person licensed or approved.
   (3) Approve or disapprove transactions, events, and processes as
provided in this chapter.
   (4) Take actions deemed to be reasonable to ensure that no
ineligible, unqualified, disqualified, or unsuitable persons are
associated with controlled gambling activities.
   (5) Take actions deemed to be reasonable to ensure that gambling
activities take place only in suitable locations.
   (6) Grant temporary licenses, work permits, or approvals on
appropriate terms and conditions.
   (7) Institute a civil action in any superior court against any
person subject to this chapter to restrain a violation of this
chapter.  An action brought against a person pursuant to this section
does not preclude a criminal action or administrative proceeding
against that person by the Attorney General or any district attorney
or city attorney.
   (8) Issue subpoenas to compel attendance of witnesses and
production of documents and other material things at a meeting or
hearing of the commission or its committees, including advisory
committees.
   (b) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.



19824A.  The division shall have all of the following
responsibilities:
   (a) To investigate the qualifications of applicants before any
license is issued, and to investigate any request to the commission
for any approval or permission that may be required pursuant to this
chapter.  The division may recommend the denial or the limitation,
conditioning, or restriction of any license, approval, or permission.

   (b) To monitor the conduct of all licensees and other persons
having a material involvement, directly or indirectly, with a
gambling operation or its holding company, for the purpose of
ensuring that licenses are not issued or held by, and that there is
no direct or indirect material involvement with, a gambling operation
or holding company by ineligible, unqualified, disqualified, or
unsuitable persons, or persons whose operations are conducted in a
manner that is inimical to the public health, safety, or welfare.
   (c) To investigate suspected violations of this chapter or laws of
this state relating to gambling, including any activity prohibited
by Chapter 9 (commencing with Section 319) or Chapter 10 (commencing
with Section 330) of Title 9 of Part 1 of the Penal Code.
   (d) To investigate complaints that are lodged against licensees,
or other persons associated with a gambling operation, by members of
the public.
   (e) To initiate, where appropriate, disciplinary actions as
provided in this chapter.  In connection with any disciplinary
action, the division may seek restriction, limitation, suspension, or
revocation of any license or approval, or the imposition of any fine
upon any person licensed or approved.
   (f) To adopt regulations reasonably related to its functions and
duties as specified in this chapter.
   (g) Approve the play of any controlled game, including placing
restrictions and limitations on how a controlled game may be played.

   (h) This section shall become operative on the occurrence of one
of the events specified in Section 66 of the act that added this
section to the Business and Professions Code.




19825.  (a) The division has all powers necessary and proper to
enable it to carry out fully and effectually the duties and
responsibilities of the division specified in this chapter.  The
investigatory powers of the division include, but are not limited to,
all of the following:
   (1) Upon approval of the director, and without notice or warrant,
the division may take any of the following actions:
   (A) Visit, investigate, and place expert accountants, technicians,
and any other person, as it may deem necessary, in all areas of the
premises wherein controlled gambling is conducted for the purpose of
determining compliance with the rules and regulations adopted
pursuant to this chapter.
   (B) Visit, inspect, and examine all premises where gambling
equipment is manufactured, sold, or distributed.
   (C) Inspect all equipment and supplies in any gambling
establishment or in any premises where gambling equipment is
manufactured, sold, or distributed.
   (D) Summarily seize, remove, and impound any equipment, supplies,
documents, or records from any licensed premises for the purpose of
examination and inspection.  However, upon reasonable demand by the
licensee or the licensee's authorized representative, a copy of all
documents and records seized shall be made and left on the premises.

   (E) Demand access to, and inspect, examine, photocopy, and audit
all papers, books, and records of an owner licensee on the gambling
premises in the presence of the licensee or his or her agent.
   (2) Except as provided in paragraph (1), upon obtaining an
inspection warrant pursuant to Section 1822.60 of the Code of Civil
Procedure, the division may inspect and seize for inspection,
examination, or photocopying any property possessed, controlled,
bailed, or otherwise held by any applicant, licensee, or any
intermediary company, or holding company.
   (3) The division may investigate, for purposes of prosecution, any
suspected criminal violation of this chapter.  However, nothing in
this paragraph limits the powers conferred by any other provision of
law on agents of the division who are peace officers.
   (4) The division may do both of the following:
   (A) Issue subpoenas to require the attendance and testimony of
witnesses and the production of books, records, documents, and
physical materials.
   (B) Administer oaths, examine witnesses under oath, take evidence,
and take depositions and affidavits or declarations.
Notwithstanding Section 11189 of the Government Code, the division,
without leave of court, may take the deposition of any applicant or
any licensee.  Sections 11185 and 11191 of the Government Code do not
apply to a witness who is an applicant or a licensee.
   (b) (1) Subdivision (a) shall not be construed to limit
warrantless inspections except as required by the California
Constitution or the United States Constitution.
   (2) Subdivision (a) shall not be construed to prevent entries and
administrative inspections, including seizures of property, without a
warrant in the following circumstances:
   (A) With the consent of the owner, operator, or agent in charge of
the premises.
   (B) In situations presenting imminent danger to health and safety.

   (C) In situations involving inspection of conveyances where there
is reasonable cause to believe that the mobility of the conveyance
makes it impractical to obtain a warrant, or in any other exceptional
or emergency circumstance where time or opportunity to apply for a
warrant is lacking.
   (D) In accordance with this chapter.
   (E) In all other situations where a warrant is not
constitutionally required.


19827.  (a) Without limiting any privilege that is otherwise
available under law, any communication or publication from, or
concerning, an applicant, licensee, or registrant, in oral, written,
or any other form, is absolutely privileged and so shall not form a
basis for imposing liability for defamation or constitute a ground
for recovery in any civil action, under any of the following
circumstances:
   (1) It was made or published by an agent or employee of the
division or commission in the proper discharge of official duties or
in the course of any proceeding under this chapter.
   (2) It was required to be made or published to the division or
commission, or any of their agents or employees, by law, regulation,
or subpoena of the division or the commission.
   (3) It was, in good faith, made or published to the division or
the commission for the purpose of causing, assisting, or aiding an
investigation conducted pursuant to this chapter.
   (b) If any document or communication provided to the division or
the commission contains any information that is privileged pursuant
to Division 8 (commencing with Section 900) of the Evidence Code, or
any other provision of law, that privilege is not waived or lost
because the document or communication is disclosed to the division or
the commission or to any of their agents or employees.
   (c) The division, the commission, and their agents and employees
shall not release or disclose any information, documents, or
communications provided by an applicant, licensee, or other person,
that are privileged pursuant to Division 8 (commencing with Section
900) of the Evidence Code, or any other provision of law, without the
prior written consent of the holder of the privilege, or pursuant to
lawful court order after timely notice of the proceedings has been
given to the holder of the privilege.  An application to a court for
an order requiring the division or the commission to release any
information declared by law to be confidential shall be made only
upon motion made in writing on not less than 10 business days' notice
to the division or the commission, and to all persons who may be
affected by the entry of the order.



19828.  Every district attorney, and every state and local law
enforcement agency, shall furnish to the division, on forms prepared
by the division, all information obtained during the course of any
substantial investigation or prosecution of any person, as determined
by the division, if it appears that a violation of any law related
to gambling has occurred, including any violation of Chapter 9
(commencing with Section 319) or Chapter 10 (commencing with Section
330) of Title 9 of Part 1 of the Penal Code.



19829.  There is an investigative account within the Gambling
Control Fund.  All funds received for the purpose of paying expenses
incurred by the division for investigation of an application for a
license or approval under this chapter shall be deposited in the
account.  Expenses may be advanced from the investigative account to
the division by the director.