SECTIONS 19840-19846 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 19840-19846

19840. The commission may adopt regulations for the administration
and enforcement of this chapter. To the extent appropriate,
regulations of the commission and the department shall take into
consideration the operational differences of large and small
establishments.

19841. 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
department to ensure fairness to the public and compliance with state
laws.
(c) Implement the provisions of this chapter relating to licensing
and other approvals.
(d) Require owner licensees to report and keep records of
transactions, including transactions as determined by the department,
involving cash or credit. The regulations may include, without
limitation, regulations requiring owner licensees to file with the
department 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 department to be
deceptive to the public. Regulations adopted by the commission 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
department.
(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 department.
(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
department'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 commission, upon the
recommendation of, or in consultation with, the department,
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 enterprises 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
enterprise 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.
(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.
(s) By December 31, 2011, provide procedures, criteria, and
timelines for the processing and approval of applications for the
licensing, temporary or interim licensing, or findings of suitability
for receivers, trustees, beneficiaries, executors, administrators,
conservators, successors in interest, or security interest holders
for a gambling enterprise so that gambling enterprises may operate
continuously in cases including, but not limited to, the death,
insolvency, foreclosure, receivership, or incapacity of a licensee.

19842. (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 10 (commencing with Section 19930).
(c) No regulation prohibiting a game or the manner in which a game
is played shall be deemed to be an emergency regulation.

19843. 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.

19844. (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 enclosure
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
19845.
(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.

19845. (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, pursuant to 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.

19846. (a) Notwithstanding any other provision of law and except as
provided in subdivision (b), a gambling enterprise that ejects or
excludes an individual based upon Section 19844 or 19845 is not
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 enterprise may not
be relieved from liability for any damages arising from the means of
ejection or exclusion.