BILL ANALYSIS                                                                                                                                                                                                   SENATE COMMITTEE ON                                        AB 2137  
GOVERNMENTAL ORGANIZATION
HEARING DATE:  July 13, 1993

            STAFF ANALYSIS OF ASSEMBLY BILL NO. 2137 (Hoge)
                        AS AMENDED JULY 8, 1993

                               SUBJECT
                              Gaming Clubs


                             DESCRIPTION

1.  AB 2137 specifies that any ballot measure after January 1, 
š     1994, placed before the electorate to prohibit the 
    establishment of a gaming club in a city, county, or city and 
    county, where gaming clubs were previously prohibited, ask the 
    following question:  "Shall card clubs in which any games 
    permitted by law are played, including, but not limited to, 
    draw poker, lowball poker, panguingue (pan), pai gow poker, pai 
    gow, and super pan 9, be allowed?".

2.  Requires the implementing ordinance to be drafted and appear in 
š     full on the sample ballot and describe as a minimum, the 
    following:

    a)  Hours of operation.

    b)  Games to be played

    c)  Wagering limits.

3.  Requires future amendments to an ordinance enacted on or after 
š     January 1, 1994, changing any of these elements, to appear on 
    the sample ballot and be submitted to the voters for approval.

4.  Exempts from these provisions, gaming clubs already in 
š     existence and lawfully operating in territories that are 
    annexed to any city or city and county after January 1, 1993.

5.  Provides that checks, credit cards, and credit instruments 
š     evidencing money owed to racing associations and satellite 
    wagering facilities licensed by the California Horse Racing 
    Board, and California card rooms and the debts they represent, 
    are valid and enforceable by legal process in California.

6.  Provides that if the Commission on State Mandates determines 
š     that this act contains costs mandated by the state, 
    reimbursement will be made from the State Mandates Claim Fund 
    as specified. 


                           (continued)

AB 2137 (HOGE)  Continued                                   Page 2




                         RELATED LEGISLATION

      SB 1122 (Calderon) 1993 Session.  Similar legislation to this 
      measure.  (Pending action before Assembly Governmental  
      Organization Committee)


                              BACKGROUND

      Current law prohibits a gaming club from being located in any 
šcity, county, or city and county, which did not permit gaming clubs 
šprior to January 1, 1984, unless the electors by majority vote 
šapprove a measure permitting legal gambling in the locality.

      Also, under present law, to be enforceable, a contract must 
have a lawful contract and lawful consideration, and may not be 
šcontrary to the policy of express law or otherwise contrary to good 
šmorals.

      According to the sponsor, the California Commerce Club states 
two reasons for this bill:  1) to provide voters in local 
šcommunities with fuller disclosure and information on ballot 
šmeasures that would legalize gambling and permit the operation of 
šcard clubs in their communities, and 2) to make checks, credit 
šcards, and credit instruments, legally enforceable as a collectible 
šdebt when given to racing associations, satellite facilities, and 
šCalifornia card rooms in payment for debt.

      The author believes that voters in some communities may not 
be aware of the magnitude and casino-like scale of operations 
šinvolved in the establishment of a modern, urban card club. 

KNOWN POSITIONS:

      California Commerce Club SUPPORTS AB 2137.  (Sponsor)

      There is NO KNOWN OPPOSITION to AB 2137.

WRITTEN COMMUNICATIONS:  None

FISCAL COMMITTEE:  Senate Appropriations

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SMH:dm