190o2g
November
13, 2019
RECEIVED
VIA
PERSONAL
DELIVERY
NOV1 4 2019
Anabel
Renteria,
Office
1300
Initiative
of the Attorney
I Street,
Sacramento,
17th
CA
RE:
Request
Dear
Ms.
Floor,
Title
proposed
Included
944255
for
II, Section
10(d)
entitled
Act,"
All
with
inquiries
01son
at 01son,
(916)
442-2952.
you
truly
this
office
submission
or correspondence
Hagel
for your
Initiative
& Fishburn,
of the California
is the required
Elections
relative
LLP,
Sports
and request
555 Capitol
we submit
Wagering
Regulation
that your
office
proponent
Code,
to this
Constitution,
along
initiative
Mall,
Suite
the
and Unlawful
prepare
a title
and
certification
pursuant
a check
for $2,000.00.
with
should
be directed
400,
Sacramento,
to
to Lance
CA
H.
95814,
assistance.
yours,
( /
!(/:
"Thorpe"
Attachments:
0 9 5 Ba
Proposed
"California
to your
9001 and 9608 of the California
sections
i
Box
Summary
Initiative,
summary.
Edwin
and
to Article
Enforcement
Very
P.0.
Renteria:
Gambling
Thank
IATIVECOORDINATOR
ATTORNEY
GENERAL'S
OFFICE
95 814
for
Pursuant
attached
Coordinator
General
i o n a
Romero
Proponent
Ro
a
Certifications
d . L a k e s i d e . C a I i Fo r n i a 9 2 0 4 0 - l 5 9 9
P It o n e 6 l 9 . 4 4 3 . 6 6 l 2
F ax 6 l 9 . 4 4 3 . 0 6 8 l
AGUA
CALIENTE
BAND
OF CAHUILLA
TRIBAL
INDIANS
COUNCIL
JEFF L. GRUBBE CHAIRMAN ii REID D. MIIANOVICH
VINCENT GONZALES III
November
VIA
1300
Initiative
of the Attorney
I Street,
Sacramento,
17th
CA
RE:
Request
Dear
Ms.
Coordinator
General
p.o. Box
Floor,
Title
and
to Article
for
Initiative,
II, Section
Proposed
"California
to
office
Act,"
Included
this submission
with
9608 of the California
All
your
Initiative
Sports
and
request
Code,
& Fishburn,
with
relative
LLP,
555
Constitution,
Wagering
Regulation
that
office
proponent
along
or correspondence
Hagel
of the California
is the reqriired
Elections
inquiries
at 01son,
10(d)
entitled
Enforcement
Thank
Summary
Renteria:
proposed
(916)
944255
95 814
for
Pursuant
01son
MEMBER
DELIVERY
Renteria,
Office
SECRETARY/TREASURER
* ANTHONY W. PURNEL
13, 2019
PERSONAL
Anabel
VICE CHAIRMAN
yorir
certification
to this
and
prepare
Unlawful
a title
pursuant
the attached
Gambling
and
to sections
summary.
9001
initiative
Mall,
Suite
shorild
be directed
400,
Sacramento,
to Lance
CA
assistance.
Jeff L. Grubbe
Chairman,
AGUA
Tribal
Council
CALIENTE
CAHUILLA
Attachments:
BAND
OF
INDIANS
Proponent
5401 Dinah Shore Drive
Certifications
ii
Palm Spmgs, CA 92264
ii
P: 760.699.6800
*
F: 760.699.6919
*
H.
95814,
442-2952.
you for your
and
for $2,000.00.
a check
Capitol
we submit
www.aguacaliente-nsn.gov
November
Tribal
12, 2019
Cocincil
Anthony
Roberts
C-lltllll11r11T
VIA
James Kinter
Secre(ar
Matthew
l-r erisuiei
PERSONAL
Lowell,
lr.
Anabel
Mia Durham
Office
iSlr'mlier
1300
Diamond
+SIc'mht'i
DELIVERY
s
Lomeli
Renteria,
Coordinator
General
p.o.
I Street, 1 7th Floor,
Sacramento,
RE:
Initiative
of the Attorney
Box
944255
CA 95 814
Request
for Title
and Summary
for Proposed
Initiative
Dear Ms. Renteria:
Pursuant
the attached
Unlawful
prepare
to Article
proposed
Gambling
a title
certification
All
inquiries
H. 01son
Thank
Very
truly
ANTHONY
Attachments:
Act,"
Included
to sections
"California
to your
with
Sports
office
Constitution,
Wagering
and request
this submission
we submit
Regulation
that your
is the required
9001 and 9608 of the California
or correspondence
CA 95814,
Hagel
(916)
relative
& Fishburn,
Elections
to this initiative
LLP,
555 Capitol
should
and
office
proponent
Code,
Mail,
be directed
Suite 400,
442-2952.
assistance.
yours,
ROBERTS,
CHAIRMAN
Proponent
Certifications
Yocha Dehe Wintun
PO Boxl8
of the California
for $2,000.00.
at 01son,
you for your
10(d)
entitled
Enforcement
pursuant
a check
Sacramento,
Initiative,
and summary.
along with
Lance
II, Section
Brooks, Califomia
95606
p) 530.796.3400
Nation
f) 530.796.2143
www.yochadehe.org
to
PECHANGA
Temecula
INDIAN
RE8ERV
Band
oj
Mission
Box
1477
LuisMo
Tribal
ATION
Chairman:
Mark
Indians
Macarro
Tribal
Post
Office
Telephone
(951)
a Temecula,
770-6000
Fax
CA
(951)
Councfl:
92593
Raymond
695-1778
Catalina
Marc
J. Basquez
R. Chacon
Luker
Robert
<<R.J.a' Munoa
Russell
aaButch" Murphy
Michael
Tribal
A. Vasquez
Secretary:
Louise
Anabel
Renteria,
Office
1300
I Street,
Sacramento,
RE:
Initiative
of the Attorney
17th
CA
Request
attached
p.o. Box 944255
and
to Article
Summary
for
II, Section
10(d)
Initiative,
Enforcement
summary.
Included
entitled
Act,"
with
this
inquiries
at 01son,
to yorir
office
submission
(916)
442-2952.
Attachments:
or correspondence
Hagel
Proponent
& Fishburn,
Certifications
Proposed
Sports
and request
Elections
Constitution,
Regulation
that your
office
Code,
proponent
along
to this initiative
555 Capitol
we submit
Wagering
is the required
relative
LLP,
Initiative
of the California
"California
9001 and 9608 of the California
01son
Delfino
Coordinator
Title
proposed
All
Treasurer:
Robyn
General
Floor,
Gambling
sections
Tribal
95 814
for
Pursuant
Burke
Mall,
Suite
the
and Unlawful
prepare
a title
and
certification
pursuant
a check
for $2,000.00.
with
should
be directed
400,
Sacramento,
to
to Lance
CA
H.
95814,
Jr.
This
initiative
of Article
This
initiative
Business
1.
Gambling
shall
(a) In May
2018,
wagering.
on sports
that
consumer
wagering.
provides
estimates
continue
The
Constitution
provisions
to be added
and adds
proposed
are printed
sections
to be deleted
in italic
8
to the
are printed
type to indicate
enterprise
Court
eliminated
the federal
and Unlawful
have
to regulate
chosen
responsible
wagering
is happening
Leading
on sports
wagering
option
prohibition
wagering
their
measures
and tax
gambling,
on sports
within
gambling
sports
and gives
and
wagering
adults
as may
generate
result
a thriving
in a
the
experts
in tens
estimate
of millions
state
across
the
and will
nature.
health
as they
or local
sports
in economic
in annual
with
has a right
state,
and regulated
of dollars
of dollars
to thrive
and public
in this
any
estimate
flourished
and unlicensed
by federal,
a legal
of millions
without
experts
wagered annually
safety
no person
permitted
market
continues
unregulated,
to public
be expressly
hundreds
black
in California
Accordingly,
California
and industry
and $380 billion
market
are a threat
elements.
throughout
economists
wagering,
due to its untaxed,
and industry
would
sports
responsible
protections.
enterprises
could
to authorize
protections,
between $50 billion
except
economists
which
Regulation
protections,
sports
sports
by criminal
years,
Wagering
activity.
ranging
illegal
gambling
in California
19 states
prohibition
(c) Unregulated
(d) Leading
Sports
the freedom
consumer
gambling
often
a gambling
Supreme
have
for consumer
in this
to be an attractive
conducted
now
Already
and untaxed
States.
as "California
regulations,
the federal
published
initial
existing
proposed
States
states
or responsible
during
market
of Section
and Declarations
the United
to participate
United
the provisions
Act"
As a result,
(b) Unregulated
that
be known
and establish
choice
of the California
Therefore,
provisions
Findings
manner
a section
Code.
Enforcement
2
taxes
with
Title
measure
borders
in accordance
are new.
SECTION
SEC.
amends
and new
to the people
Constitution.
and Professions
they
This
is submitted
measure
a
in
that
measure
II of the California
are
to operate
law.
wagering
activity
tax revenue
in the
for the State
of California.
(e) Sports
illegal
wagering
gambling
consumer
should
operations
be regulated
to allow
and taxed
adults
in California
the choice
protections.
1
to stamp
to participate
in this
out the black
activity
with
market
strong
of
(f) Taxing
sports
preventing
problems
state's
general
wagering
fund
(g) Californians
wagering
over
standing
(h) In keeping
wagering
law
with
must
(i) In order
our
safety,
ensure
that
gambling
and competitively,
industry
must
and other
be held
applicable
(l) Current
enforcement
our
gambling
state's
organizations
that
A well
responsibly
gaming
including
from
illegal
over
and are
people,
21 years
sports
old.
Existing
to be promoted
there
and universities,
must
also
wagering
shall
will
sports
or
be no advertising
only
be allowed
races.
wagering,
will
that
locations.
are complying
on any currently
public
and enforced
to
it is conducted
The
with
on high
not endanger
be enacted
elements,
at suitable
they
not
wagering
prohibited.
dog
measures
and corruptive
sports
be strictly
or other
including
laws
and Licensed
California
laws
wagering
California
honestly
gaming
anti-money
schools,
water
operations.
against
system
Racing
Associations.
governments
laundering
laws
resources
systems,
to help
cultural
environmental
California
tribes
have
shared
tribes
strengthen
tribal
communities.
more
operate
reverse
allowed
2
to highly
the financial
sports
Indian
to enforce
and
the brutal
resource
$1 billion
regulated
resources
wagering
gaming
California
protection,
than
ways
be able to report
wagering
and with
operated
have
more
unscrupulous
activities.
sports
to safely
have
resources
scholarships,
limit
operations
needs
from
should
gambling
wil(
best entities
These
adults
Californians
illegal
in gambling
much-needed
California
and vulnerable
The
tribal
Americans.
are inadequate.
children
last 20 years,
to help
adults
sports
operations
and young
Accordingly,
comprehensive
to ensure
gambling
the activity.
services,
to only
to
the
agencies.
and is not an activity
teams
sports
criminal
to protect
sports
healthcare,
regulatory
related
finance
and regulations.
of California
generating
in legal
in gaming
our children
as greyhound
it is conducted
operate
Native
enforcement
that
are experienced
2000,
lands,
California
gambling,
that
casinos
(n) Since
tribal
run
supervised
safe facilities
legal
of gambling
laws
violations
such
accountable
laws
and local
be limited
college
requires
is free
state,
and families.
of animals,
and that
to participate
are experienced
and our colleges
contests,
that
or welfare
the choice
and help
to children.
students
of animal
confidence
health,
(m)
wagering
safety.
that
for programs
health,
and public
addictive
for children
the exploitation
form
Public
It must
funding
and mental
of protecting
can become
and on California-based
(j) To prevent
prohibited
enforce
regulated.
gambling
to protect
sports
have
federal,
values
to increase
gambling
of age should
California
of sports
revenue
to education
the appropriate
be tightly
new
problem
and safe facilities
as entertainment
or marketing
school
21 years
our
that
create
with
related
regulated
with
recognizes
legitimized
(k)
priorities
in highly
in good
would
associated
history
protection,
are Indian
casinos
tribes
fire
and more.
in revenues
on their
endured
to provide
services,
Importantly,
with
and
to
own
by
services
law
in the
non-gaming
(o) In 2016, Indian
gaming
in California
directly
and indirectly
generated
the following
economic and fiscal impacts on the California
economy: 124,300 jobs; $20 billion
billion in wages to employees; $3.4 billion in taxes and revenue sharing payments
state, and local governments
million to local governments.
(p) Horse racing
including
in California
nearly
represents
$1 billion
the oldest form of sports wagering
17,000
licensed jobs are tied to the horse racing
Racing
Board,
over $3 billion
to the state, to the world's
Analytical
Chemistry
from sales taxes.
(q) The California
activity
Regulation
is regulated
while
of gambling
SEC. 3.
equine chemistry
Sports Wagering
raising
strong consumer
According
each year. This brings
at the University
can do so legally,
enforcement
industry.
Laboratory
ensures that sports wagering
health, ensuring
is wagered
premier
to the State of California
laboratory,
and Unlawful
in California.
Davis,
in revenue
L. Maddy
Gambling
revenue for education,
especially
public
for children
Equine
and to local governments
Enforcement
Act
and taxed, so adults who choose to participate
protections
Over
Horse
of dollars
the Kenneth
$9
and $378
to the California
in millions
of California,
total
in output;
to federal,
in this
safety and for mental
and strengthening
laws.
Purposes and Intent
The purpose
of the California
Act is to regulate
regulations
and tax sports wagering
and safeguards,
(a) Regulating
and taxing
create a regulatory
allowing
Sports Wagering
in California
and Unlawful
and strengthen
Gambling
California's
Enforcement
gambling
by:
sports wagering,
structure
sports wagering
Regulation
that prevents
at highly
to take sports wagering
access by minors
regulated
out of the black market
and protects
and safe facilities
public
and
safety by
that are experienced
in gaming
operations.
(b) Permitting
tribal
after negotiations
gaming
pursuant
operations
(c) Permitting
also highly
governments
to offer spoits wagering,
to state and federal
and possess the financial
Licensed
regulated
Racing
resources
Associations
and are experienced
(e) Creating
strict consumer
and public
(1) Requiring
health,
protections
to responsibly
with
have an expertise
dice,
in
operate sports wagering.
as these associations
are
operations.
are in good standing
to promote
and games played
governments
to offer sports wagering
in gaming
(d) Ensuring that these facilities and operators
state, and local regulatory agencies.
children
law, as tribal
roulette,
responsible
with the appropriate
sports wagering
federal,
and protect
such as:
adults over 21 to be physically
3
present
in a facility
to place sports wagers.
(2) Only
permitting
sports
wagering
by those
over 21 to safeguard
against
underage
gambling.
(3) Prohibiting
the marketing
and advertising
of sports
wagering
to persons
younger
than
21 years old.
(4) Permitting
sports
wagering
only
on professional,
college,
or amateur
sport
or athletic
events.
(5) Prohibiting
wagering
on any high
wagering
on any sports
school
sports
or athletic
events to protect
our
students.
(6) Prohibiting
participates,
to protect
(7) Prohibiting
other
wagering
integrity
Imposing
a 10 percent
Associations
to fund
implementation
the state's
(g) Auditing
tax on sports
programs
fund
college
team
and universities.
animal
races, such as greyhound
or
of animals.
for anti-corruption
wagering
activity
related
to problem
of sports
wagering
priorities
expenditures
to provide
any California
measures
to ensure
the
events.
and oversight
general
illegal
the exploitation
the Legislature
of sporting
in which
and our colleges
on any currently
dogs races, to prevent
(8) Allowing
(j)
our students
event
related
of sports
gambling
Racing
and mental
of gaming,
and public
revenue
by Licensed
prevention
and other forms
to education
wagering
conducted
health
and the
and help finance
safety.
to ensure this revenue
is spent properly
and effectively.
(h) Protecting
public
safety
laws to allow
Californians
(i) Increasing
enforcement
gambling
opportunities
measures
will
ensure
that it is conducted
enterprises
(j) Ensuring
them
subject
SEC. 4.
by strengthening
to hold
of existing
play
that all lawful
that establishments
Section
audit
activities
gambling
burdening
that offer
and operations
by suitable
local
current
gambling
accountable.
that all establishments
the law. These
is free from
legal
of California's
rules to ensure
and follow
and competitively
without
to appropriate
gambling
gambling
by the rules
honestly
accountable
illegal
the enforcement
criminal
operators
increased
and corruptive
and hold
that offer
enforcement
elements
gambling
law enforcement.
sports
wagering
play
by the rules by making
standards
19 of Article
IV of the California
4
Constitution
is amended
to read:
and
SEC. 19. (a) The Legislature
lottery
tickets
(b) The Legislature
wagering
has no power
to authorize
lotteries,
and shall prohibit
the sale of
in the State.
may provide
for the regulation
of horse races and horse race meetings
and
on the results.
(c) Notwithstanding
subdivision
to provide
games,
for bingo
(d) Notwithstandmg
(a), the Legislature
but only
subdivision
for charitable
(a), there
by statute
may authorize
cities
and counties
purposes.
is authorized
the establishment
of a California
State
Lottery.
(e) The Legislature
operating
has no power
in Nevada
and New
(f) Notwithstandmg
subdivisions
is authorized
to negotiate
the operation
of slot machines
card games,
Indian
roulette,
tribes
lottery
and sports
wagering
to those
provide
directly
are hereby
of the type currently
of state law, the Governor
to ratification
games
wagering
in accordance
permitted
provision
of lottery
dice, and sports
with
by the Legislature,
for
and banking
and percentage
by federally
recognized
federal
card games,
to be conducted
(a), the Legislature
by the Legislature,
for their
own
provided
law. Accordingly,
roulette,
games played
and operated
or another
or charitable
that is conducting
may amend
to beneficial
private,
purposes
with
the raffle.
raffles
nonprofit,
slot
with
on Indiari
dice,
lands
eligible
purposes
organization's
is an employee
two-thirds
of gross receipts
by means
eligible
from
to
beneficial
the raffle
who
and
go
receives
of the private
nonprofit
of the membership
required
of a statute
nonprofit,
mechanism
and (2) any person
of a raffle
The Legislature,
the percentage
private,
as a funding
of the gross receipts
in California,
the operation
or charitable
may authorize
to conduct
that (1) at least 90 percent
in connection
house concurring,
dedicated
subject
and percentage
subdivision
to beneficial
organization
with
in California
banking
as defined
works,
compensation
casinos
compacts.
support
charitable
compacts,
and for the conduct
lands
(f) (g) Notwithstandmg
organizations,
and conclude
games,
and shall prohibit,
(a) and (e), and any other
games played
on Indian
machines,
subject
to authorize,
Jersey.
of each
by this subdivision
that is signed
to be
by the
Governor.
(h) Notwithstanding
subdivision
(a) and (e), begiwing
on January
1, 2022,
Licensed
Racing
Associations, as defined by sectiori 19670 of the Business and Professions Code, may offer sports
wagering,
physically
Licerised
Racing
provided
placed
that all wagers
by patrons,
RacingAssociation's
Association
authorized
and accepted
approved
hosts live horse
race
to be made pursuant
by the Licensed
enclosure
meetings.
5
to this subdivision
RacingAssociation,
at the race track
at which
within
shall
the
the Licensed
be
(i)(l)ForthepurposesofsubdivisionsQ)and(h),
"sportswagering"shallmeanwageringon
the results of any professional, college, or amateur sport or athletic event. But, sports wagering
shall
not mean
(A) Any
high
wagering
school
on:
sport
or athletic
event;
(B) A sport or athletic event in which any California college teamparticipates regardless qf
where the event takesplace, however a sport or athletic event in which any Califorriia college
team participates shall not include other games of a collegiate sport or athletic tournament in
which a Califor'riia college teamparticipates;
(C) Any
(2)
sport
or athletic
The Legislature
event,
shall
including
authorize
horse
by law,
races,
statutes
that
has already
necessary
occurred;
to implement
this
subdivision,
which shall also provide for consumerprotections and anti-corruptiotq measuresto ensure the
integrity of sport or athletic everits.
SEC.
5.
SEC.
5.1. Article
Division
Sports
Wagering
Regulation
12 (commencing
8 of the Business
Article
with
and Unlawful
Section
and Professions
12.
Sports
Wagering
19670)
Code,
Gambling
is added
Enforcement.
to Chapter
4 of
to read:
at Licensed
Horse
Racing
Facilities
19670. Defmitions.
For the purposes of this article and Section19 ofArticle IVof the California Constitution,
"Licerised RacingAssociations" shall meari an association licensed by the Califorriia Horse
Racing Board to conduct live horse race meetings at racing tracks located in the Counties of
Alameda, Los Angeles, Orange, or San Diego and operated by a private entity as qf January 1,
2020, and shall not include racing tracks of"state designatedfairs," as defined by subdivision
(a) of sectiori 19418 qf the Business and Prqfessions Code as that section read on January 1,
2020.
19671.
Sports
Wagering
Tax.
(a) The daily total of sports wagers with a Licensed RacingAssociation, less the daily total of
winnings
by patrons,
shall
be subject
to a 10 percent
tax.
(b) The California Department of Tax and Fee Administration shall admiriister and collect the
tax imposed by subdivision (a) and may prescribe, adopt, and enforce regulations relating to the
administration arid enforcement of this section, including, but not limited to, collections,
reporting, refunds, and appeals.
(c) All revenues resultirig from the tax pursuant to subdivision (a) shall be deposited into the
California Sports Wagering Ftmd created by section 19672.
6
19672. CaliforniaSports WageringFund.
(a) The Califorma Sports Wagering Fund is hereby established in the State Treasury and,
Government
Code section 13340, is coMinuously
appropriated
without regard
notviiithstanding
for fiscal year for carrying out the purposes of this article.
(b) All revenues
raised pursuant
to the tax imposed
by section 19671
shall be deposited
into the
California Sports Wagering Fund.
(c) Payments
made to the state pursuant
to tribal-state
compacts
related
to sports wagering
may
be deposited into the California Sports Wagering Fund.
(d) For purposes of the calculations required by Section 8 ofArticle XVI of the Califorriia
Constitution, ftmds transferred to the California Sports Wageririg Fund shall be considered
General
Fund revenues
which
may be appropriated
pursuant
to Article
XIIIB.
19673. Distribution of Morieysfrom the California Sports Wagering Fund.
(a) Any actual and reasonable costs incurred by the Controller and the California Department of
Tax and Fee Administration in connection with the administration of the California Sports
Wagering Fund and the collection of the tax established by section 19671 as determined by the
Director of Finance, shall be deductedfrom the California Sports Wagering Fund beforefurids
are disbursed
pursuant
to subdivision
(b).
(b) Each fiscal year begiririing in 2022-23, the Controller shall disburse the money deposited in
the California Sports Wagering Fund remaining afler disbursement is madepursuant to
subdivision (a), asfollows:
(1) Fifteen percent to the California Department of Health for research, developmerit, and
implementation of programs and grants for problem gambling prevention and mental health, and
for grants to counties and cities for local programs to addressproblem gambling and mental
health.
(2) Fifteen percent to the Bureau of Gambling Control within the Department of Justice for the
actual and reasonable costs qf the enforcement and implementatiori of sports wagering and other
forms of gaming within the State of California. The Bureau of Gambling Control shall not spend
more than 5 percent of the total furids it receivesfrom the California Sports Wagering Fund on
an anriual basisfor admiriistrative costs as determined by the Director of Finance.
(3) Seventy percent
to the General
Fund.
(c) Every two years, the Controller shall conduct an audit of the programs operated by the
agencies specifted in paragraphs (1) and (2), of subdivisions (b) to ensure thefurids are
disbursed and expendedsolely according to this article and shall report their findings to the
Legislature
and the public.
7
(d) Thefunding described in paragraphs (1) and (2) of subdivision (b) shall be used to expand
programs for purposes to this Act. Thesefunds shall not be used to supplant existing state or
local funds utilized for thesepurposes.
19674.AgeLimitforSports
Wagering
(a) A person under 21 years of age shall not place wagers on, be allowed to place wagers on, or
collect winnings from, whether personally or through an agent, any sport event at a Licensed
RacingAssociation
racing
track.
(b) A person under 21 years of age shall not present or offer to any Licensed RacingAssociation
racing track, or to an agent of a Licensed RacingAssociation racing track, any written, printed,
or photostatic evidence of age and ideritity that is false, fraudulent, or not actually their own for
the purpose of placing a wager on a sports event.
(c) Any person under 21 years of age who violates this section is guilty of a misdemeanor.
SEC.
5.2. Article
the Business
18 (commencing
and Professions
with
Code,
Section
19990)
is added
to Chapter
5 of Division
8 of
to read:
Article 18. Unlawful Gambling Enforcement.
19990. The Private Attorneys GeneralAct for the Gambling ControlAct
(a) In addition to any other penalty provided by law, any person in violation of any conduct
made unlawful by Chapter 10 (commencing with Sectiori 330) of Title 9 of Part 1 qf the Penal
Code shall be liable for a civil penalty of up to $10,000 per violation in a civil action brought in
the name of the people of the State of California by the Attorney General. In addition, the
Attorney General is empowered to enforce this section by issuing a dosure order of twenty-four
(24) hours for thefirst offense, a closure order offorty-eight hours (48)for the second offense,
and a permanent closure order for the third offense.
(b) Any person or entity that becomesaware of any person in violation of any conduct made
unlawful by Chapter 10 (commencing with Section 330) of Title 9 of Part 1 of the Penal Code
mayfile a civil action for civil penalties as provided in subdivisiori (a), if prior to filing such
action, the person or entity files with the Attorney General a written requestfor the Attorney
General to commencethe action. The request shall include a dear and concise statement of the
grounds for believing a cause of action exists.
(1) If the Attorrtey General files suit within 90 daysfrom receipt of the written request to commence
the action,
dismissed
770
other
without
action
may
be brought
unless
the action
brought
by the Attorney
General
is
prejudice.
(2) If the Attorney General does not file suit within 90 daysfrom receipt of the written request to
commencethe action, the person or entity requesting the action may proceed to file a civil action.
(3) The time period within which a civil action shall be commencedshall be tolled from the date
of receipt by the Attorney General of the writteri request to either the date that the civil action is
dismissed without prejudice, or for 150 days, whichever is later, but only for a civil action brought
by the person
or entity
who
requested
the Attorney
General
8
to commence
the action.
(c) If a judgment is entered against the defendant or defendants in an action brought pursuant to
this section,
or the matter
is settled,
amounts
received
as civil penalties
or pursuant
to a settlement
of the action shall be allocated asfollows:
(1) If the action was brought by the Attorney General upon a request made by a person or entity,
pursuant to subdivision (a), the State shall be entitled to a recovery of all civil penalties, which
shall be deposited in the Califorma Sports WageringFund created by section 19672.
(2) If the action was brought by the person or entity who made the requestpursuant to subdivision
(a), all civil penalties shall be deposited in the California Sports WageringFund created by section
19672.
19991. Prohibition OfMarketingandAdvertisingSports
WageringDirectedtoMinors.
(a) For purposes of this section.'
(1) 'Advertise" means the publicatiori or dissemination of an advertisement.
(2) ",4dvertisement"
calculated
material,
literature,
shall
includes
to promote
billboard,
sports
sign,
publication,
not include
any written
wagering,
or other
outdoor
or in a radio
any editorial
or verbal
display,
reading
illustration,
any written,
or television
or other
statement,
including
public
transit
broadcast,
material,
printed,
card,
or depictiori
graphic,
which
is
or other
other periodical
or in any other
media.
such as a news release,
This term
in any
periodical or publication or newspaperfor the publication of which no moriey or valuable
consideration is paid or promised, directly or indirectly, by any facility operating sports
wagering, and which is not written by or at the direction of thefacility operatirig sports
wagering.
(3) 'Advertising
sign"
is ariy sign, poster,
display,
billboard,
or ariy other
stationary
or
permanently affixed advertisementpromoting sports wagering.
(4) "Market"or "Marketing"meansanyactorprocessqfpromotingsportswagering,
including, but not limited to, sponsorship of sporting events,point-of-sale advertising, and
development of products specifically designed to appeal to certain demographics.
(b) Any advertising
communications
or marketing
shall
only
placed
be displayed
in broadcast,
where
cable,
the audience
radio,
print,
is reasonably
and digital
expected
to be 22
years of age or older, as determined by reliable, up-to-date audience composition data.
(c) ,47?)/ advertising
or marketing
involving
direct,
individualized
communication
or dialogue
controlled by a facility operating sports wagering shall utilize a method of age affirmation to
verify that the recipient is 21 years of age or older before engaging in that communicatiori or
dialogue controlled by thefacility operating sports wagering. For purposes of this subdivision,
that method of age affirmation may include user confirmation, birth date disclosure, or other
similar
registration
method.
(d) A facility operating sports wagering shall riot:
9
(1) Advertise
or market
sports wagering
in a manner
intended
to encourage
persons
under 21
years of age to participate in sports wagering.
(2) Publish
or disseminate
advertising
or marketing
that is attractive
to children.
19992. AuditforSports WageringFacilities
The Bureau of Gambling Control within the Department of Justice shall perform all
investigatory and auditing functions provided in sections 19826 arid 19827 over facilities that
operate
sports wagering,
unless otherwise
provided
in a tribal-state
compact.
SEC. 6. Amendments
This Act shall be broadly
be amended
construed
to accomplish
so long as such amendments
statute that is passed by a two-thirds
its purposes.
are consistent
The provisions
with and further
vote of the members
of Section
5 inay
the intent of this act by a
of each house of the Legislature
and
signed by the Governor.
SEC. 7.
Severability
The provisions
sentence,
decision
portions
If any portion,
section,
jurisdiction,
that decision
and application
paragraph,
not declared
of this Act or application
thereof
10
section,
invalid
would
clause,
by a
shall not affect the validity
of this Act. The People of the State of California
phrase, word,
any portion
subdivision,
of this Act is for any reason held to be invalid
have adopted this Act and each and every portion,
sentence,
whether
or application
of any court of competent
remaining
would
of this Act are severable.
phrase, word,
of the
hereby declare that they
subdivision,
or unconstitutional
be subsequently
paragraph,
clause,
without
regard to
declared
invalid.