19830A.  (a) The commission may adopt regulations for the
administration and enforcement of this chapter.  To the extent
appropriate, regulations of the commission and the division shall
take into consideration the operational differences of large and
small establishments.
   (b) Subject to subdivision (d), Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to the following regulations of the commission,
if adopted within 90 days after the effective date of this chapter:
   (1) Regulations described in subdivisions (a), (b), (e), (g), (h),
(i) to (n), inclusive, (p), and (q) of Section 19834A.
   (2) Regulations adopted for the purpose of implementing Section 62
of the act that enacted this chapter.
   (c) Any regulation adopted pursuant to subdivision (b) shall be
filed with the Secretary of State and shall be effective immediately
upon that filing.
   (d) Except as otherwise provided in this subdivision, no
regulation adopted pursuant to subdivision (b) shall be valid after
September 1, 1998, unless the regulation has been subsequently
readopted by the division in accordance with Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code, subject to all of the following:
   (1) This subdivision does not apply to a regulation that is
exempted from Article 5 (commencing with Section 11346) of Chapter
3.5 of Division 3 of Title 2 of the Government Code, by operation of
subdivision (a) of Section 11346.1 of the Government Code.
   (2) If, prior to September 1, 1998, the division has mailed a
notice described in Section 11346.4 of the Government Code with
respect to a regulation adopted pursuant to subdivision (b), the
regulation shall not cease to be effective pursuant to this
subdivision until the earlier of one of the following events:
   (A) The readopted regulation is filed with the Secretary of State
pursuant to subdivision (a) of Section 11349.3, or subdivision (e) of
Section 11349.5, of the Government Code.
   (B) The readopted regulation has been disapproved by the Office of
Administrative Law and the time within which a request for review
may be filed pursuant to Section 11349.5 of the Government Code has
expired.
   (C) The readopted regulation is disapproved by the Office of
Administrative Law, and the Governor transmits a decision pursuant to
subdivision (c) of Section 11349.5 of the Government Code affirming
the disapproval.



19834A.  The regulations adopted by the commission shall do all of
the following:
   (a) With respect to applications, registrations, investigations,
and fees, the regulations shall include, but not be limited to,
provisions that do all of the following:
   (1) Prescribe the method and form of application and registration.

   (2) Prescribe the information to be furnished by any applicant,
licensee, or registrant concerning, as appropriate, the person's
personal history, habits, character, associates, criminal record,
business activities, organizational structure, and financial affairs,
past or present.
   (3) Prescribe the information to be furnished by an owner licensee
relating to the licensee's gambling employees.
   (4) Require fingerprinting or other methods of identification of
an applicant, licensee, or employee of a licensee.
   (5) Prescribe the manner and method of collection and payment of
fees and issuance of licenses.
   (b) Provide for the approval of game rules and equipment by the
division to ensure fairness to the public and compliance with state
laws.
   (c) Implement the provisions of this chapter relating to
licensing.
   (d) Require owner licensees to report and keep records of
transactions, as determined by the division, involving cash or
credit.  The regulations may include, without limitation, regulations
requiring owner licensees to file with the division reports similar
to those required by Sections 5313 and 5314 of Title 31 of the United
States Code, and by Sections 103.22 and 103.23 of Title 31 of the
Code of Federal Regulations, and any successor provisions thereto,
from financial institutions, as defined in Section 5312 of Title 31
of the United States Code and Section 103.11 of Title 31 of the Code
of Federal Regulations, and any successor provisions.
   (e) Provide for the receipt of protests and written comments on an
application by public agencies, public officials, local governing
bodies, or residents of the location of the gambling establishment or
future gambling establishment.
   (f) Provide for the disapproval of advertising by licensed
gambling establishments that is determined by the division to be
deceptive to the public.  Regulations adopted by the division for
advertising by licensed gambling establishments shall be consistent
with the advertising regulations adopted by the California Horse
Racing Board and the Lottery Commission.  Advertisement that appeals
to children or adolescents or that offers gambling as a means of
becoming wealthy is presumptively deceptive.
   (g) Govern all of the following:
   (1) The extension of credit.
   (2) The cashing, deposit, and redemption of checks or other
negotiable instruments.
   (3) The verification of identification in monetary transactions.
   (h) Prescribe minimum procedures for adoption by owner licensees
to exercise effective control over their internal fiscal and gambling
affairs, which shall include, but not be limited to, provisions for
all of the following:
   (1) The safeguarding of assets and revenues, including the
recording of cash and evidences of indebtedness.
   (2) Prescribing the manner in which compensation from games and
gross revenue shall be computed and reported by an owner licensee.
   (3) The provision of reliable records, accounts, and reports of
transactions, operations, and events, including reports to the
division.
   (i) Provide for the adoption and use of internal audits, whether
by qualified internal auditors or by certified public accountants.
As used in this subdivision, "internal audit" means a type of control
that operates through the testing and evaluation of other controls
and that is also directed toward observing proper compliance with the
minimum standards of control prescribed in subdivision (h).
   (j) Require periodic financial reports from each owner licensee.
   (k) Specify standard forms for reporting financial conditions,
results of operations, and other relevant financial information.
   (l) Formulate a uniform code of accounts and accounting
classifications to ensure consistency, comparability, and effective
disclosure of financial information.
   (m) Prescribe intervals at which the information in subdivisions
(j) and (k) shall be furnished to the division.
   (n) Require audits to be conducted, in accordance with generally
accepted auditing standards, of the financial statements of all owner
licensees whose annual gross revenues equal or exceed a specified
sum.  However, nothing herein shall be construed to limit the
division's authority to require audits of any owner licensee.
Audits, compilations, and reviews provided for in this subdivision
shall be made by independent certified public accountants licensed to
practice in this state.
   (o) Restrict, limit, or otherwise regulate any activity that is
related to the conduct of controlled gambling, consistent with the
purposes of this chapter.
   (p) Define and limit the area, games, hours of operation, number
of tables, wagering limits, and equipment permitted, or the method of
operation of games and equipment, if the division determines that
local regulation of these subjects is insufficient to protect the
health, safety, or welfare of residents in geographical areas
proximate to a gambling establishment.
   (q) Prohibit gambling establishments from cashing checks drawn
against any federal, state, or county fund, including, but not
limited to, social security, unemployment insurance, disability
payments, or public assistance payments.  However, a gambling
establishment shall not be prohibited from cashing any payroll checks
or checks for the delivery of goods or services that are drawn
against a federal, state, or county fund.
   Gambling establishments shall send the commission copies of all
dishonored or uncollectible checks at the end of each quarter.
   (r) Provide for standards, specifications, and procedures
governing the manufacture, distribution, including the sale and
leasing, inspection, testing, location, operation, repair, and
storage of gambling equipment, and for the licensing of persons
engaged in the business of manufacturing, distributing, including the
sale and leasing, inspection, testing, repair, and storage of
gambling equipment.


19834.5A.  (a) The commission shall not prohibit, on a statewide
basis, the play of any game or restrict the manner in which any game
is played, unless the commission, in a proceeding pursuant to this
article, finds that the game, or the manner in which the game is
played, violates a law of the United States, a law of this state, or
a local ordinance.
   (b) Nothing in this section shall be construed to limit the powers
of the commission in a proceeding against a licensee pursuant to
Article 9.5 (commencing with Section  19920A).
   (c) No regulation prohibiting a game or the manner in which a game
is played shall be deemed to be an emergency regulation.



19834.6A.  The commission shall not prohibit, on a statewide basis,
the placing of a wager on a controlled game by a person at a gaming
table, if the person is present at the table and actively
participating in the hand with a single-seated player upon whose hand
the wagers are placed.



19835.6.  (a) Notwithstanding any other provision of law and except
as provided in subdivision (b), no gambling establishment that ejects
or excludes an individual based upon Section 19835A or 19835.5A
shall be subject to civil liability for a mistake as to the grounds
for ejecting or excluding a person if the ejection or exclusion was
based upon a reasonable and good faith belief, after a reasonable
investigation, that these sections applied to the individual in
question.
   (b) Notwithstanding subdivision (a), a gambling establishment
shall not be relieved from liability for any damages arising from the
means of ejection or exclusion.



19835A.  (a) The commission shall, by regulation, provide for the
formulation of a list of persons who are to be excluded or ejected
from any gambling establishment.  The list may include any person
whose presence in the establishment is determined by the commission
to pose a threat to the interests of this state or to controlled
gambling, or both.
   (b) In making the determination described in subdivision (a), the
commission may consider, but is not limited to considering, any of
the following:
   (1) Prior conviction of a crime that is a felony in this state or
under the laws of the United States, a crime involving moral
turpitude, or a violation of the gambling laws of this or any other
state.
   (2) The violation of, or conspiracy to violate, the provisions of
this chapter relating to the failure to disclose an interest in a
gambling establishment for which the person is required to obtain a
license, or the willful evasion of fees.
   (3) A notorious or unsavory reputation that would adversely affect
public confidence and trust that the gambling industry is free from
criminal or corruptive elements.
   (4) An order of exclusion or ejection from a racing inclosure
issued by the California Horse Racing Board.
   (c) The commission shall distribute the list of persons who are to
be excluded or ejected from any gambling establishment to all owner
licensees and shall provide notice to any persons included on the
list.
   (d) The commission shall adopt regulations establishing procedures
for hearing of petitions by persons who are ejected or excluded from
licensed premises pursuant to this section or pursuant to Section
19835.5A.
   (e) The commission may revoke, limit, condition, or suspend the
license of an owner, or fine an owner licensee, if that licensee
knowingly fails to exclude or eject from the gambling establishment
of that licensee any person included on the list of persons to be
excluded or ejected.



19835.5A.  (a) A licensee may remove from his or her licensed
premises any person who, while on the premises:
   (1) Is a disorderly person, as defined by Section 647 of the Penal
Code.
   (2) Interferes with a lawful gambling operation.
   (3) Solicits or engages in any act of prostitution.
   (4) Begs, is boisterous, or is otherwise offensive to other
persons.
   (5) Commits any public offense.
   (6) Is intoxicated.
   (7) Is a person who the commission, by regulation, has determined
should be excluded from licensed gambling establishments in the
public interest.
   (b) Nothing in this section shall be deemed, expressly or
impliedly, to preclude a licensee from exercising the right to deny
access to or to remove any person from its premises or property for
any reason the licensee deems appropriate.



19836A.  This article 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.