Amended in Assembly May 4, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 431

Introduced by Assembly Member Gray

(Principal coauthor: Senator Hall)

February 19, 2015

An act to add Chapter 5.2 (commencing with Section 19990.101) to Division 8 of the Business and Professions Code, relating to gambling.

LEGISLATIVE COUNSEL’S DIGEST

AB 431, as amended, Gray. Gambling: Internet poker.

Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice.

This bill would begin delete authorize the operation of an Internet poker Web site within the borders of the state. The bill would require the commission, in consultation with the department, to promulgate regulations for intrastate Internet poker. The bill would require those regulations to include, but not be limited to, a licensing process for an individual or entity to become an operator of an Internet poker Web site and rules for the operation of an Internet poker Web site. end delete begin insert declare the Legislature’s intent regarding the authorization of Internet poker within the borders of the state. The bill would require the Legislature, among other things, to include consumer protections for Californians in any Internet poker framework that may be adopted by the Legislature to authorize Internet poker in the state, to ensure that framework provides a fair share of revenue for the state, and to include strict standards in that framework to ensure that the Internet poker games are fair. The bill would also make related legislative findings and declarations. end insert

Vote: majority. Appropriation: no. Fiscal committee:  begin delete yes end delete begin insert no end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares both of the
following:

(a) In October 2006, the United States Congress passed the
Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA)
(31 U.S.C. Secs. 5361 et seq.), which generally prohibits the use
of banking instruments, including credit cards, checks, and fund
transfers, for interstate Internet gambling.

(b) UIGEA essentially prohibits online gambling by United
States citizens, but includes exceptions that permit individual states
to create a regulatory framework to enable intrastate Internet
gambling, if the bets or wagers are made exclusively within a
single state under certain circumstances.

SEC. 2.  

Chapter 5.2 (commencing with Section 19990.101) is
added to Division 8 of the Business and Professions Code, to read:

 

Chapter  5.2. Authorized Intrastate Internet Poker

 

Article 1.  General Provisions

 

19990.101.  

begin delete An Internet poker Web site authorized pursuant to
this chapter may be operated within the borders of the state end delete begin insert (a) end insert begin insert   end insert begin insert It
is the intent of the Legislature that any Internet poker framework
that may be adopted by the Legislature to authorize Internet poker
in the state end insert begin insert be developed end insert in accordance with all applicable laws
and regulations, including, but not limited to, the Unlawful Internet
Gambling Enforcement Act of 2006 (31 U.S.C. Secs. 5361 et seq.).

begin insert

(b) Any Internet poker framework shall contain consumer
protections for Californians who seek to engage in a legal
alternative to unlawful Internet poker, ensure a fair share of
revenue for the state, and protect the public interest by ensuring
that the various aspects of Internet poker are sanctioned and
regulated by the state. The framework shall also provide
mechanisms to address the negative impacts of Internet poker
gambling and seek to provide economic benefits to California’s
economy.

end insert begin insert

(c) A framework shall also include strict standards to ensure
that the Internet poker games are fair, operated by qualified
entities, and are played by persons of legal age who are located
in California, using technologies to identify and restrict access by
minors.

end insert

begin delete

 

Article 2.  Definitions

 

19990.201.  

For purposes of this chapter, the following
definitions apply:

(a) “Commission” means the California Gambling Control
Commission.

(b) “Department” means the Department of Justice.

end delete begin delete

 

Article 3.  Administration

 

19990.301.  

The commission, in consultation with the
department, shall promulgate regulations for intrastate Internet
poker. These regulations shall include, but not be limited to, both
of the following:

(a) A licensing process for an individual or entity to become an
operator of an Internet poker Web site.

(b) Rules for the operation of an Internet poker Web site.

end delete