BUSINESS AND PROFESSIONS CODE
SECTION 19959-19980
19959. (a) The Legislature finds and declares that there is a
compelling governmental interest in ensuring that elections conducted
pursuant to Section 19950 are conducted fairly and that electors in
those elections are presented with fair and balanced arguments in
support of and in opposition to the existence of gambling
establishments. Large contributions by gambling operators or
prospective gambling operators who will be financially interested in
the outcome of the election often unfairly distort the context in
which those elections take place.
(b) In California, in other states, and in other countries, there
is ample historical evidence of the potential for revenues derived
from gambling to be used to corrupt political officials in the
regulation or prosecution of crimes related to gambling activities,
embezzlement, and money laundering.
(c) This article is an exercise of the police power of the state
for the protection of the health, safety, and welfare of the people
of this state.
19959.5A. (a) A member of the commission, the executive secretary
of the commission, the director of the division, and any employee
designated by regulation of the commission or the division for
purposes of this section, shall not, for a period of three years
after leaving office or terminating employment, for compensation, act
as agent or attorney for, or otherwise represent, any other person
by making any formal or informal appearance, or by making any oral or
written communication, before the commission or the division, or any
officer or employee thereof, if the appearance or communication is
for the purpose of influencing administrative action, or influencing
any action or proceeding involving the issuance, amendment, awarding,
or revocation of a permit, license, or approval.
(b) A member of the commission shall not solicit or accept
campaign contributions from any person, including any applicant or
licensee.
(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.
19960.2A. (a) A license may be denied, suspended, or revoked if the
applicant or licensee, within three years prior to the submission of
the license or renewal application, or any time thereafter, violates
any law or ordinance with respect to campaign finance disclosure or
contribution limitations applicable to an election that is conducted
pursuant to Section 19950 or pursuant to former Section 19819, as
that section read immediately prior to its repeal by the act that
enacted this chapter.
(1) The remedies specified herein are in addition to any other
remedy or penalty provided by law.
(2) Any final determination by the Fair Political Practices
Commission that the applicant did not violate any provision of state
law within its jurisdiction shall be binding on the commission.
(3) Any final determination by a city or county governmental body
having ultimate jurisdiction over the matter that the applicant did
not violate an ordinance with respect to campaign finance disclosure
or contribution limitations applicable to an election conducted
pursuant to Section 19950, or former Section 19819, as that section
read immediately prior to its repeal by the act that enacted this
chapter, shall be binding on the commission.
(b) Every applicant for a gambling license, or any renewal
thereof, shall file with the division, at the time the license
application or renewal is filed, the following information:
(1) Any statement or other document required to be filed with the
Fair Political Practices Commission relative to an election that is
conducted pursuant to Section 19950, or former Section 19819, as that
section read immediately prior to its repeal by the act that enacted
this chapter, within three years of the date on which the
application is submitted.
(2) Any statement or other document required to be filed with any
local jurisdiction respecting campaign finance disclosure or
contribution limitations applicable to an election that is conducted
pursuant to Section 19950, or former Section 19819, as that section
read immediately prior to its repeal by the act that enacted this
chapter, within three years of the date on which the application is
submitted.
(3) A report of any contribution of money or thing of value, in
excess of one hundred dollars ($100), made to any committee, as
defined by Section 82013 of the Government Code, associated with any
election that is conducted pursuant to Section 19950, or former
Section 19819, as that section read immediately prior to its repeal
by the act that enacted this chapter, within three years of the date
on which the application is submitted.
(4) A report of any other significant involvement by the applicant
or licensee in an election that is conducted pursuant to Section
19950, or former Section 19819, as that section read immediately
prior to its repeal by the act that enacted this chapter, within
three years of the date on which the application is submitted.
(c) The commission shall adopt regulations to implement this
section.
(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.
19960.4. It is the intent of the Legislature that if any provision
of this article is adjudged by a court to be invalid because of any
conflict or inconsistency with the Political Reform Act of 1974
(Title 9 (commencing with Section 81000) of the Government Code), as
amended, that judgment shall not affect, impair, or invalidate any
other provision of this chapter and the application thereof to other
persons or circumstances, but shall be confined to the operation of
the clause, sentence, paragraph, or part thereof directly involved in
the controversy in which the judgment was rendered and to the person
or circumstances involved.
19980. Notwithstanding any other provision of law, a licensed
gambling establishment may contract with a third party for the
purpose of providing proposition player services, subject to the
following conditions:
(a) Any agreement, contract, or arrangement between a gambling
establishment and a third-party provider of proposition player
services shall be approved in advance by the division, and in no
event shall a gambling establishment or the house have any interest,
whether direct or indirect, in funds wagered, lost, or won.
(b) The commission shall establish reasonable criteria for, and
require the licensure and registration of, any person or entity that
provides proposition player services to gambling establishments
pursuant to this section, including owners, supervisors, and players.
Those employed by a third-party provider of proposition player
services, including owners, supervisors, observers, and players,
shall wear a badge which clearly identifies them as proposition
players whenever they are present within a gambling establishment.
The commission may impose licensing requirements, disclosures,
approvals, conditions, or limitations as it deems necessary to
protect the integrity of controlled gambling in this state, and may
assess and collect reasonable fees and deposits as necessary to
defray the costs of providing this regulation and oversight.
(c) The division, pursuant to regulations of the commission, is
empowered to perform background checks, financial audits, and other
investigatory services as needed to assist the commission in
regulating third party providers of proposition player services, and
may assess and collect reasonable fees and deposits as necessary to
defray the costs of providing this regulation and oversight. The
division shall adopt emergency regulations in order to implement this
section in an expeditious manner.
(d) No agreement or contract between a licensed gambling
establishment and a third party concerning the provision of
proposition player services shall be invalidated or prohibited by the
division pursuant to this section until the commission establishes
criteria for, and makes determinations regarding the licensure or
registration of, the provision of these services pursuant to
subdivision (b).