19810-19830

BUSINESS AND PROFESSIONS CODE
SECTION 19810-19830




19810.  Except as otherwise provided in this chapter, any power or
authority of the department described in this chapter may be
exercised by the Attorney General or any other person as the Attorney
General may delegate.


19811.  (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. The California
Gambling Control Commission shall succeed to all of the powers of the
former California Gambling Control Board.
   (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.




19812.  (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 or a person with experience in banking or finance, 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 or alternatively five years of governmental
experience, and one member shall be from the public at large.



19813.  (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
commission 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.



19814.  (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
chief 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.



19815.  (a) The members of the commission shall receive the salary
provided for by Section 11553.5 of the Government Code.
   (b) The chairperson of the commission shall receive the salary
provided for by Section 11553 of the Government Code.




19816.  (a) The commission shall have an executive director
appointed by the commission. A person is ineligible for appointment
as executive director or deputy executive director 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 director shall receive the annual salary
established by the commission and approved by the Department of
Personnel Administration. The executive director shall be the
commission's executive officer and shall carry out and execute the
duties as specified by law and by the commission.
   (c) The commission may appoint other staff and clerical personnel
as necessary to carry out its duties under this chapter.




19817.  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 director 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. The
committee may not advise the commission on Indian gaming.



19818.  (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, 2005.



19819.  (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 principal 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 department 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.




19820.  The commission may employ not more than eight attorneys.
Nothing in this section shall be deemed to exempt the commission from
the operation of Section 11040, 11042, or 11043 of the Government
Code.


19821.  (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 department and commission may maintain any other files and
records as they deem appropriate. Except as provided in this
chapter, the records of the department and commission are exempt from
disclosure under 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 department, 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 department or the commission to
any person in any civil proceeding wherein the department 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.



19822.  (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 department conducted pursuant to
this chapter shall be made available to the department 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 department.
   (b) All files, records, reports, and other information pertaining
to gambling matters in the possession of the department shall be open
at all times to inspection by the members of the commission.




19823.  (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 19857, and "disqualified person" means a person who
is found to be disqualified pursuant to the criteria set forth in
Section 19859.


19824.  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:
   (a) Require any person to apply for a license, permit,
registration, or approval as specified in this chapter, or
regulations adopted pursuant to this chapter.
   (b) For any cause deemed reasonable by the commission, deny any
application for a license, permit, or approval provided for in this
chapter or regulations adopted pursuant to this chapter, limit,
condition, or restrict any license, permit, or approval, or impose
any fine upon any person licensed or approved. The commission may
condition, restrict, discipline, or take action against the license
of an individual owner endorsed on the license certificate of the
gambling enterprise whether or not the commission takes action
against the license of the gambling enterprise.
   (c) Approve or disapprove transactions, events, and processes as
provided in this chapter.
   (d) Take actions deemed to be reasonable to ensure that no
ineligible, unqualified, disqualified, or unsuitable persons are
associated with controlled gambling activities.
   (e) Take actions deemed to be reasonable to ensure that gambling
activities take place only in suitable locations.
   (f) Grant temporary licenses, permits, or approvals on appropriate
terms and conditions.
   (g) 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.
   (h) 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.


19824.5.  The executive director and members of the commission may
administer oaths and certify official acts in connection with the
business of the commission.



19825.  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.



19826.  The department shall have all of the following
responsibilities:
   (a) To investigate the qualifications of applicants before any
license, permit, or other approval is issued, and to investigate any
request to the commission for any approval that may be required
pursuant to this chapter. The department may recommend the denial or
the limitation, conditioning, or restriction of any license, permit,
or other approval.
   (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 department 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.
The department shall make available to the public the rules of play
and the collection rates of each gaming activity approved for play at
each gambling establishment on the Attorney General's Web site.
Actual costs incurred by the department to review and approve game
rules shall be reimbursed to the department by the licensee making
the request.



19827.  (a) The department has all powers necessary and proper to
enable it to carry out fully and effectually the duties and
responsibilities of the department specified in this chapter. The
investigatory powers of the department include, but are not limited
to, all of the following:
   (1) Upon approval of the chief, and without notice or warrant, the
department 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 department 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 department 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 law on
agents of the department who are peace officers.
   (4) The department 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 department, 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.



19828.  (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
department 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 department or
commission, or any of their agents or employees, by law, regulation,
or subpoena of the department or the commission.
   (3) It was, in good faith, made or published to the department 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 department 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 department
or the commission or to any of their agents or employees.
   (c) The department, 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 department 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 department or the commission, and to all persons who may be
affected by the entry of the order.



19829.  Every district attorney, and every state and local law
enforcement agency, shall furnish to the department, on forms
prepared by the department, all information obtained during the
course of any substantial investigation or prosecution of any person,
as determined by the department, 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.



19830.  There is an investigative account within the Gambling
Control Fund. All funds received for the purpose of paying expenses
incurred by the department 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 department by the chief.