| 1 | 1 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1268Introduced by Assembly Member PattersonFebruary 19, 2021 An act to amend Sections 19826, 19841, and 19867 of the Business and Professions Code, relating to gambling. LEGISLATIVE COUNSEL'S DIGESTAB 1268, as introduced, Patterson. Gambling Control Act.(1) 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. The act authorizes the commission and the department to impose and collect fees for various actions related to the licensure and regulation of gambling. The act further authorizes the commission and the department to adopt regulations regarding the fees.This bill would require the commission and the department, when increasing a fee amount, to include a clear statement justifying the need for the fee increase and explaining how the funds will be used in the regulation updating the fee.(2) The act authorizes the department to require an applicant to deposit money adequate to pay the costs of an investigation associated with an application for a license, and allows the department to require additional funds to be deposited during the investigation, as needed. The act requires the department, at the conclusion of the investigation, to refund any unused portion of this deposit and to provide a written accounting of costs and charges.This bill would require additional information to be included in the accounting of charges and would require this accounting to be provided whenever an additional deposit of funds is requested by the department.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 19826 of the Business and Professions Code is amended to read:19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities:(a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter.(2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request.SEC. 2. Section 19841 of the Business and Professions Code is amended to read: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 manner of application and registration.(2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs.(3) Prescribe the information to be furnished by an owner licensee relating to the licensees 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.(6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 this section does not limit the departments 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.SEC. 3. Section 19867 of the Business and Professions Code is amended to read:19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges.(b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation.(c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1268Introduced by Assembly Member PattersonFebruary 19, 2021 An act to amend Sections 19826, 19841, and 19867 of the Business and Professions Code, relating to gambling. LEGISLATIVE COUNSEL'S DIGESTAB 1268, as introduced, Patterson. Gambling Control Act.(1) 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. The act authorizes the commission and the department to impose and collect fees for various actions related to the licensure and regulation of gambling. The act further authorizes the commission and the department to adopt regulations regarding the fees.This bill would require the commission and the department, when increasing a fee amount, to include a clear statement justifying the need for the fee increase and explaining how the funds will be used in the regulation updating the fee.(2) The act authorizes the department to require an applicant to deposit money adequate to pay the costs of an investigation associated with an application for a license, and allows the department to require additional funds to be deposited during the investigation, as needed. The act requires the department, at the conclusion of the investigation, to refund any unused portion of this deposit and to provide a written accounting of costs and charges.This bill would require additional information to be included in the accounting of charges and would require this accounting to be provided whenever an additional deposit of funds is requested by the department.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 13 | 13 | | No. 1268 |
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| 15 | 15 | | Introduced by Assembly Member PattersonFebruary 19, 2021 |
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| 17 | 17 | | Introduced by Assembly Member Patterson |
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| 18 | 18 | | February 19, 2021 |
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| 20 | 20 | | An act to amend Sections 19826, 19841, and 19867 of the Business and Professions Code, relating to gambling. |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 1268, as introduced, Patterson. Gambling Control Act. |
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| 27 | 27 | | |
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| 28 | 28 | | (1) 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. The act authorizes the commission and the department to impose and collect fees for various actions related to the licensure and regulation of gambling. The act further authorizes the commission and the department to adopt regulations regarding the fees.This bill would require the commission and the department, when increasing a fee amount, to include a clear statement justifying the need for the fee increase and explaining how the funds will be used in the regulation updating the fee.(2) The act authorizes the department to require an applicant to deposit money adequate to pay the costs of an investigation associated with an application for a license, and allows the department to require additional funds to be deposited during the investigation, as needed. The act requires the department, at the conclusion of the investigation, to refund any unused portion of this deposit and to provide a written accounting of costs and charges.This bill would require additional information to be included in the accounting of charges and would require this accounting to be provided whenever an additional deposit of funds is requested by the department. |
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| 30 | 30 | | (1) 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. The act authorizes the commission and the department to impose and collect fees for various actions related to the licensure and regulation of gambling. The act further authorizes the commission and the department to adopt regulations regarding the fees. |
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| 32 | 32 | | This bill would require the commission and the department, when increasing a fee amount, to include a clear statement justifying the need for the fee increase and explaining how the funds will be used in the regulation updating the fee. |
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| 34 | 34 | | (2) The act authorizes the department to require an applicant to deposit money adequate to pay the costs of an investigation associated with an application for a license, and allows the department to require additional funds to be deposited during the investigation, as needed. The act requires the department, at the conclusion of the investigation, to refund any unused portion of this deposit and to provide a written accounting of costs and charges. |
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| 36 | 36 | | This bill would require additional information to be included in the accounting of charges and would require this accounting to be provided whenever an additional deposit of funds is requested by the department. |
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| 37 | 37 | | |
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| 38 | 38 | | ## Digest Key |
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| 39 | 39 | | |
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| 40 | 40 | | ## Bill Text |
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| 41 | 41 | | |
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| 42 | 42 | | The people of the State of California do enact as follows:SECTION 1. Section 19826 of the Business and Professions Code is amended to read:19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities:(a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter.(2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request.SEC. 2. Section 19841 of the Business and Professions Code is amended to read: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 manner of application and registration.(2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs.(3) Prescribe the information to be furnished by an owner licensee relating to the licensees 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.(6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 this section does not limit the departments 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.SEC. 3. Section 19867 of the Business and Professions Code is amended to read:19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges.(b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation.(c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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| 44 | 44 | | The people of the State of California do enact as follows: |
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| 46 | 46 | | ## The people of the State of California do enact as follows: |
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| 48 | 48 | | SECTION 1. Section 19826 of the Business and Professions Code is amended to read:19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities:(a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter.(2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request. |
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| 50 | 50 | | SECTION 1. Section 19826 of the Business and Professions Code is amended to read: |
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| 52 | 52 | | ### SECTION 1. |
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| 54 | 54 | | 19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities:(a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter.(2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request. |
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| 56 | 56 | | 19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities:(a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter.(2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request. |
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| 57 | 57 | | |
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| 58 | 58 | | 19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities:(a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter.(2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request. |
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| 59 | 59 | | |
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| 60 | 60 | | |
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| 61 | 61 | | |
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| 62 | 62 | | 19826. The department shall perform all investigatory functions required by this chapter, as well as auditing functions under tribal gaming compacts, and shall have all of the following responsibilities: |
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| 63 | 63 | | |
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| 64 | 64 | | (a) To receive and process applications for any license, permit, or other approval, and to collect all related fees. The department shall investigate the qualifications of applicants before any license, permit, or other approval is issued, and 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. |
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| 65 | 65 | | |
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| 66 | 66 | | (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. |
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| 67 | 67 | | |
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| 68 | 68 | | (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. |
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| 69 | 69 | | |
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| 70 | 70 | | (d) To investigate complaints that are lodged against licensees, or other persons associated with a gambling operation, by members of the public. |
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| 71 | 71 | | |
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| 72 | 72 | | (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. |
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| 73 | 73 | | |
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| 74 | 74 | | (f) (1) To adopt regulations reasonably related to its functions and duties as specified in this chapter. |
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| 75 | 75 | | |
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| 76 | 76 | | (2) When increasing the amount of a fee, to include in the regulation a clear statement justifying the need for the fee increase and explaining how the funds will be used. |
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| 77 | 77 | | |
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| 78 | 78 | | (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 Generals Web site. internet website. Actual costs incurred by the department to review and approve game rules shall be reimbursed to the department by the licensee making the request. |
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| 79 | 79 | | |
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| 80 | 80 | | SEC. 2. Section 19841 of the Business and Professions Code is amended to read: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 manner of application and registration.(2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs.(3) Prescribe the information to be furnished by an owner licensee relating to the licensees 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.(6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 this section does not limit the departments 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. |
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| 81 | 81 | | |
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| 82 | 82 | | SEC. 2. Section 19841 of the Business and Professions Code is amended to read: |
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| 83 | 83 | | |
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| 84 | 84 | | ### SEC. 2. |
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| 85 | 85 | | |
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| 86 | 86 | | 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 manner of application and registration.(2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs.(3) Prescribe the information to be furnished by an owner licensee relating to the licensees 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.(6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 this section does not limit the departments 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. |
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| 87 | 87 | | |
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| 88 | 88 | | 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 manner of application and registration.(2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs.(3) Prescribe the information to be furnished by an owner licensee relating to the licensees 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.(6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 this section does not limit the departments 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. |
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| 89 | 89 | | |
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| 90 | 90 | | 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 manner of application and registration.(2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs.(3) Prescribe the information to be furnished by an owner licensee relating to the licensees 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.(6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used.(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 this section does not limit the departments 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. |
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| 91 | 91 | | |
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| 92 | 92 | | |
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| 93 | 93 | | |
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| 94 | 94 | | 19841. The regulations adopted by the commission shall do all of the following: |
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| 95 | 95 | | |
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| 96 | 96 | | (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: |
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| 97 | 97 | | |
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| 98 | 98 | | (1) Prescribe the method and manner of application and registration. |
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| 99 | 99 | | |
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| 100 | 100 | | (2) Prescribe the information to be furnished by any applicant, licensee, or registrant concerning, as appropriate, the persons personal history, habits, character, associates, criminal record, business activities, organizational structure, and financial affairs, past or present. present financial affairs. |
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| 101 | 101 | | |
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| 102 | 102 | | (3) Prescribe the information to be furnished by an owner licensee relating to the licensees gambling employees. |
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| 103 | 103 | | |
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| 104 | 104 | | (4) Require fingerprinting or other methods of identification of an applicant, licensee, or employee of a licensee. |
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| 105 | 105 | | |
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| 106 | 106 | | (5) Prescribe the manner and method of collection and payment of fees and issuance of licenses. |
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| 107 | 107 | | |
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| 108 | 108 | | (6) When a fee is increased, include a clear statement justifying the need for the fee increase and explaining how the funds will be used. |
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| 109 | 109 | | |
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| 110 | 110 | | (b) Provide for the approval of game rules and equipment by the department to ensure fairness to the public and compliance with state laws. |
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| 111 | 111 | | |
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| 112 | 112 | | (c) Implement the provisions of this chapter relating to licensing and other approvals. |
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| 113 | 113 | | |
|---|
| 114 | 114 | | (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. |
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| 115 | 115 | | |
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| 116 | 116 | | (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. |
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| 117 | 117 | | |
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| 118 | 118 | | (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. |
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| 119 | 119 | | |
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| 120 | 120 | | (g) Govern all of the following: |
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| 121 | 121 | | |
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| 122 | 122 | | (1) The extension of credit. |
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| 123 | 123 | | |
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| 124 | 124 | | (2) The cashing, deposit, and redemption of checks or other negotiable instruments. |
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| 125 | 125 | | |
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| 126 | 126 | | (3) The verification of identification in monetary transactions. |
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| 127 | 127 | | |
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| 128 | 128 | | (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: |
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| 129 | 129 | | |
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| 130 | 130 | | (1) The safeguarding of assets and revenues, including the recording of cash and evidences of indebtedness. |
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| 131 | 131 | | |
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| 132 | 132 | | (2) Prescribing the manner in which compensation from games and gross revenue shall be computed and reported by an owner licensee. |
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| 133 | 133 | | |
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| 134 | 134 | | (3) The provision of reliable records, accounts, and reports of transactions, operations, and events, including reports to the department. |
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| 135 | 135 | | |
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| 136 | 136 | | (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). |
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| 137 | 137 | | |
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| 138 | 138 | | (j) Require periodic financial reports from each owner licensee. |
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| 139 | 139 | | |
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| 140 | 140 | | (k) Specify standard forms for reporting financial conditions, results of operations, and other relevant financial information. |
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| 141 | 141 | | |
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| 142 | 142 | | (l) Formulate a uniform code of accounts and accounting classifications to ensure consistency, comparability, and effective disclosure of financial information. |
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| 143 | 143 | | |
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| 144 | 144 | | (m) Prescribe intervals at which the information in subdivisions (j) and (k) shall be furnished to the department. |
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| 145 | 145 | | |
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| 146 | 146 | | (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 this section does not limit the departments 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. |
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| 147 | 147 | | |
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| 148 | 148 | | (o) Restrict, limit, or otherwise regulate any activity that is related to the conduct of controlled gambling, consistent with the purposes of this chapter. |
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| 149 | 149 | | |
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| 150 | 150 | | (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. |
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| 151 | 151 | | |
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| 152 | 152 | | (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. |
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| 153 | 153 | | |
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| 154 | 154 | | (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. |
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| 155 | 155 | | |
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| 156 | 156 | | (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. |
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| 157 | 157 | | |
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| 158 | 158 | | SEC. 3. Section 19867 of the Business and Professions Code is amended to read:19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges.(b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation.(c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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| 159 | 159 | | |
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| 160 | 160 | | SEC. 3. Section 19867 of the Business and Professions Code is amended to read: |
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| 161 | 161 | | |
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| 162 | 162 | | ### SEC. 3. |
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| 163 | 163 | | |
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| 164 | 164 | | 19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges.(b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation.(c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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| 165 | 165 | | |
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| 166 | 166 | | 19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges.(b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation.(c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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| 167 | 167 | | |
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| 168 | 168 | | 19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges.(b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation.(c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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| 169 | 169 | | |
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| 170 | 170 | | |
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| 171 | 171 | | |
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| 172 | 172 | | 19867. (a) An application for a license or a determination of suitability shall be accompanied by the deposit of a sum of money that, in the judgment of the chief, will be adequate to pay the anticipated costs and charges incurred in the investigation and processing of the application. The chief shall adopt a schedule of costs and charges of investigation for use as guidelines in fixing the amount of any required deposit under this section. The schedule shall distinguish between initial and renewal licenses with respect to costs and charges. |
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| 173 | 173 | | |
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| 174 | 174 | | (b) During an investigation, the chief may require an applicant to deposit any additional sums as are required by the department to pay final costs and charges of the investigation. |
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| 175 | 175 | | |
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| 176 | 176 | | (c) Any money received from an applicant in excess of the costs and charges incurred in the investigation or the processing of the application shall be refunded pursuant to regulations adopted by the department. At the conclusion of the investigation, or when an additional deposit is required by the department pursuant to subdivision (b), the chief shall provide the applicant a written, itemized accounting of the costs and charges thereby incurred. Each item contained in the accounting shall include a date, start time, end time, and name of the department employee that performed the task. |
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