HEARING TITLE OVERVIEW OF
GAMBLING IN CALIFORNIA.
LEGALITY AUTHORIZATION AND
REGULATION.
AS I MENTIONED A COUPLE WEEKS
AGO I WANTED TO USE THIS TIME
BEFORE.
BILL HEARINGS NEXT MONTH TO HOLD
A COUPLE OF INFORMATIONAL
HEARINGS ON THOSE ISSUES THAT
WILL BE COMING BEFORE OUR
COMMITTEE IT DURING THIS
LEGISLATIVE SESSION. TWO WEEKS
AGO WE HELD OUR FIRST HEARING.
FOCUSED ON THE DEPARTMENT OF ABC
AND TIED ALICE LAWS.
I KNOW MEMBERS OF THIS GOOD GUY
COMMITTEE INCLUDING MYSELF WERE
VERY APPRECIATIVE OF DIRECTOR
APPLE SMITH'S PRESENTATION.
AND WE LEARNED A LOT ABOUT --
OUR STATE ALCOHOL LAWS.
TODAY HOWEVER OUR FOCUS SHIFTS
TO GAMBLING.
IN THE STATE OF CALIFORNIA.
AS MANY OF YOU KNOW CALIFORNIA
IS ONE OF THE LARGEST LEGAL
GAMING MARKETS IN THE WORLD.
WITH SIXTY THREE TRIBAL CASINOS
IN ALMOST NINETY CARD ROOMS.
A STATE LOTTERY HORSE RACING IN
VARIOUS FORMS OF CHARITABLE
GAMING.
WITH SUCH DIFFERENT FORMS OF
GAMING IT'S NO SURPRISE.
THAT VARIOUS STATE ENTITIES ARE
RESPONSIBLE FOR LICENSING
REGULATING ENFORCING GAMBLING
LAWS.
IN THE STATE OF CALIFORNIA.
I'M HOPEFUL THAT TODAY'S HEARING
WILL PROVIDE MEMBERS OF THIS
COMMITTEE WITH VALUABLE
INFORMATION AS TO THE ROLE EACH
RESPECTIVE STATE ENTITY.
HAS A AND HELP US --
BETTER UNDERSTAND THE ISSUES
THAT WE WILL BE FACING THIS
COMING YEAR.
LET ME THANK ALL THE WITNESSES --
IN ADVANCE FOR BEING HERE I ALSO
WANT TO RECOGNIZING --
CAN GRADUALLY --
IN A NAY MORE.
JUST LAST WEEK APPOINTED AS
TRIBAL NEGOTIATIONS ADVISER BY
GOVERNOR NEWSON WELCOME --
WE LOOK FORWARD TO WORKING WITH
YOU -- IN IN
THE COMING YEARS AND ESPECIALLY
WANT TO THANK YOU FOR AGREEING
TO TESTIFY ONLY ONE WEEK AFTER
APPOINTMENTS.
SO I APPRECIATE IT --
JUST SOME HOUSEKEEPING RULES IF
WE COULD HAVE EACH WITNESS COME
UP INDIVIDUALLY RATHER THAN ALL
THE SAME TIME --
THAT WOULD BE APPRECIATED
THEY'LL BE SOME TIME FOR PUBLIC
COMMENT TOWARDS THE END OF THE
HEARING.
LET'S BEGIN WITH A NEED A LEAD
PRINCIPLE AND FISCAL.
AND POLICY ANALYST WITH THE
LEGISLATIVE ANALYST'S OFFICE.
GOOD MORNING ANITA.
GOOD MORNING OVER IS IMMEDIATELY
WITH THE LEGISLATIVE ANALYST'S
OFFICE AND WE WERE ASKED TO COME
TODAY TO PROVIDE AN OVERVIEW --
TO KIND OF SET UP THE
DISCUSSIONS THAT YOU'LL BE
HEARING ON THE ENDS AND THE NEXT
FEW PANELS. TO THE SERGEANTS
HAVE DISTRIBUTED A HANDOUT THAT
WE'LL BE USING AS A GUIDE FOR
COMICS TODAY IT SORT OF LOOKS
LIKE THIS --
SO IF YOU TURN TO PAGE ONE OF
YOUR HAND OUT.
YOU'LL SEE THAT WILL FIRST TO
PROVIDE AN OVERVIEW OF EACH OF
THE MAJOR FORMS OF GAMBLING AND
THEN WE'LL CONCLUDE OUR COMMENTS
WITH SOME EMERGING ISSUES.
THAT THIS COMMITTEE WILL LIKELY
DISCUSS OR BE HEARING ABOUT IN
THE NEXT.
YEAR OR SO.
IF YOU TURN TO PAGE TWO OF YOUR
HAND NOT WLL FOR START WITH
TRIBAL GAMING.
SO PROPOSITION ONE A IN TWO
THOUSAND AMENDED THE STATE
CONSTITUTION TO ALLOW FEDERALLY
RECOGNIZED TRIBES. TO OPERATE
SLOT MACHINES LOTTERY GAMES AND
TAKING A PERCENTAGE GAMES ON
TRIBAL LANDS AS LONG AS THE
REACH AN AGREEMENT WITH THE
GOVERNOR THE TRIBAL STATE
COMPACT.
THAT CONTACT IS RATIFIED BY THE
LEGISLATURE AND THE FEDERAL
GOVERNMENT APPROVES IT.
THE LEGISLATURE HAS RATIFIED
TROUBLE STATE COMPACTS WITH
SEVENTY FOUR TRIBES IN THERE
ABOUT SIXTY THREE CASINOS THAT
ARE OPERATING IN THE STATE.
THE INDUSTRY GENERALLY --
GENERATES ABOUT EIGHT BILL AFTER
WINNINGS.
THE STATE GENERAL FUND --
IN EIGHTEEN NINETEEN IS
ESTIMATED TO RECEIVE ABOUT THREE
POINT SIX MILLION DOLLARS THIS
IS A DECLINE FOR THOSE OF YOU
WHO HAVE BEEN AROUND FOR A
LITTLE BIT FROM THE THREE
HUNDRED AND THIRTY MILLION THAT
WAS DEPOSITED ANNUALLY.
BEFORE SIXTEEN SEVENTEEN AND
THIS REALLY REFLECTS THE
RENEGOTIATION OF A NUMBER OF
TRIBAL STATE COMPACT TO COMPLY
WITH A FEDERAL COURT ORDER WHICH
BASICALLY SAID THAT UPON
RENEGOTIATION OF THE CONTACTS
THE STATE CAN NO LONGER REQUIRE.
DEPOSITS OF REVENUE INTO THE
STATE GENERAL FUND.
THEN ON TOP OF THIS ABOUT THIRTY
THREE MILLION IN REVENUE WILL
SUPPORT STATE REGULATORY --
COSTS.
EACH TRIBE THAT HAS A CASINO HAS
THEIR OWN GAMING AGENCY THAT
OVERSEES HAVE THE ON SITE
REGULATORY --
RESPONSIBILITIES AND THEN ON TOP
OF THAT THE CALIFORNIA GIMLI
CONTROL COMMISSION AND DOJ'S
BUREAU GAMBLING CONTROL SHARE
OVERSIGHT TO ENSURE COMPLIANCE
WITH THE TRAVEL STATE COMPACTS.
IF YOU TURN TO PAGE THREE OF
YOUR HAND OUT WILL THEN TURN OUR
ATTENTION TO THE CALIFORNIA
STATE LOTTERY.
WHICH WAS AUTHORIZED BY
PROPOSITION THIRTY SEVEN IN.
NINETEEN EIGHTY FOUR THE LOTTERY
OFFERS A VARIETY OF DIFFERENT
GAMES SOCIAL HERE PROBABLY ABOUT
IN MORE DETAIL --
THEY RANGE FROM THE INSTANT
GAMES LIKE THE SCRIPTURES TO THE
MULTI STATE GAMES LIKE POWER
BALL.
THERE ARE APPROXIMATELY TWENTY
THREE THOUSAND RETAILERS THAT
SELL LOTTERY PRODUCTS ACROSS THE
STATE.
AND IN SEVENTEEN EIGHTEEN THE
INDUSTRY GENERATED ABOUT. TWO
POINT FIVE BILLION IN REVENUE
AFTER WINNINGS.
OF THIS AMOUNT ABOUT ONE POINT
SEVEN BILLION WILL GO TO SUPPORT
EDUCATION.
AND EIGHT HUNDRED AND THIRTY
MILLION OR PORT ADMINISTRATIVE
REGULATORY AND PROBLEM GAMING
COSTS.
THE LOTTERY'S ACTIVITIES ARE
OVERSEEN BY A FIVE MEMBER
LOTTERY COMMISSION WITH MEMBERS
THAT ARE APPOINTED BY THE
GOVERNOR AND APPROVED BY THE
SENATE.
IF YOU TURN TO PAGE FOUR OF YOUR
HAND OUT WILL THEN TURN OUR
ATTENTION TO CARD ROOMS.
STATE LAW PERMITS CARD ROOMS TO
OPERATE IN THOSE CITIES OR
COUNTIES THAT HAVE ADOPTED
ORDINANCES THAT PERMIT THEM TO
BE THERE.
IN ADDITION TO THAT THEY DO HAVE
TO COMPLY WITH STATE REGULATIONS
SUCH AS LICENSING REQUIREMENTS
EXCITER OUT.
THERE'S CURRENTLY A MORATORIUM
ON THE NEW CARD ROOMS THAT CAN
BE IN THE STATE AND THAT GOES
THROUGH JANUARY FIRST OF TWENTY
TWENTY THREE THE CARD ROOMS CAN
OFFER A VARIETY OF DIFFERENT
CARD GAMES THEY GENERALLY HAVE
TO BE APPROVED BY THE BUREAU
CAMERA CONTROL.
BUT CAN INCLUDE THINGS LIKE
POKER AND TAKE OUT --
THEY'RE CURRENTLY EIGHTY EIGHT
CARD ROOMS IN THE STATE.
AND THE INDUSTRY GENERATES
ROUGHLY EIGHT HUNDRED AND FIFTY
MILLION AND REVENUE AFTER
WINNINGS.
CARD ROOMS IN THEIR OWNERS ARE
GENERALLY --
SUBJECT TO BUSINESS AND INCOME
TAX REQUIREMENTS AND THEN
SEPARATE FROM THAT THERE'S ABOUT
TWENTY ONE POINT TWO MILLION IN
FEE REVENUE THAT WILL BE
COLLECTED TO OFFSET STATE
REGULATORY AND PROBLEM GAMING
COSTS.
THE BUREAU OF GAMBLING CONTROL
AS WELL AS THE CALIFORNIA FAMILY
CONTROL COMMISSION BOTH SHARE
OVERSIGHT OVER THE CARD ROOMS
AND LOCAL GOVERNMENTS HAVE A
LITTLE INPUT AS WELL OFF.
IF YOU TURN TO PAGE FIVE OF YOUR
HAND OUT WHERE THEY WILL THEN
TURN OUR ATTENTION TO HORSE
RACING.
WHICH WAS AUTHORIZED BY
PROPOSITION THREE IN.
NINETEEN THIRTY THREE STATE LAW
ALLOWS FOR WAGERS TO BE TAKEN ON
SITE AT THE FACILITIES OFFSITE
AT SATELLITE.
FACILITIES --
ONLINE AS WELL AS AN OUT OF
STATE LOCATIONS THEY'RE
CURRENTLY ABOUT THIRTY SEVEN
TRACKS AND SATELLITE FACILITIES
THAT ACCEPT THE WAGERS AND
CALIFORNIA.
AND THE INDUSTRY GENERATED ABOUT
SIX ON AFTER WINNINGS AND
SEVENTEEN EIGHTEEN SIMILAR TO
THE CARD ROOMS HORSE RACE THE
HORSE RACING INDUSTRY IS SUBJECT
TO BOTH BUSINESS AND STATE
INCOME TAX REQUIREMENTS.
BUT ON TOP OF THIS IN SEVENTEEN
EIGHTEEN THE STATE GENERAL FUND
IS ESTIMATED TO RECEIVE ABOUT
ONE MILLION DOLLARS DIRECTLY.
AS WELL AS FOURTEEN MILLION IN
FEE REVENUE TO SUPPORT
ADMINISTRATIVE AND ENFORCEMENT
COSTS.
THE HORSE RACING INDUSTRY IS
SIMILARLY --
GOVERNED BY A COMMISSION AT
SEVEN MEMBERS ARE APPOINTED BY
THE GOVERNOR.
IF YOU TURN TO PAGE SIX OF YOUR
HAND OUT --
THIS PAGE HIGHLIGHTS KIND OF THE
FOUR TYPES OF GAMBLING THAT ARE
AVAILABLE TO SUPPORT TERRIBLE
TERRIBLE ORGANIZATIONS --
OVERSIGHT IS GENERALLY DONE BY
DOJ'S BUREAU OF GAMBLING CONTROL
OR THEIR CHARITABLE TRUSTS
SECTION OR COMBINATION OF THE
TWO AND THE CALIFORNIA AGAIN WE
CONTROL COMMISSION AND LOCAL
GOVERNMENT SOMETIMES HAVE
OVERSIGHT AS WELL.
SO THE FIRST TYPE IS THE CARD
NIGHT FUNDRAISER AND SO STATE
LAW AUTHORIZED CERTAIN NONPROFIT
ORGANIZATIONS. TO HOST ONE CARD
NIGHT FUND RAISER PER YEAR AND
WHICH GAMES THAT ARE APPROVED BY
THE BUREAU CAMERA CONTROL CAN BE
OFFERED. 90% OF THE GROSS
REVENUE DOES HAVE TO GO SUPPORT
IN THE NONPROFIT ORGANIZATION.
THE SECOND IS BINGO PROPOSITION
NINE OF NINETEEN SEVENTY SIX
AUTHORIZES THE CITIES AND
COUNTIES AT ADOPT ORDINANCES TO
OFFER BINGO WITHIN THEIR
JURISDICTIONS.
THE THIRD IS THAT A RAFFLES
PROPOSITION SEVENTEEN IN --
TWO THOUSAND AMENDED THE
CONSTITUTION TO AUTHORIZE
CERTAIN NONPROFIT ORGANIZATIONS.
TO CONDUCT RAFFLES WHERE 90%
SIMILAR PERCENTAGE --
GOES TO SUPPORT BENEFICIAL OR
CHARITABLE PURPOSES.
THE LAST ONE IS THE KIND OF THE
NEWEST ONE IT WHICH IS THE FIFTY
FIFTY RAFFLE --
SB FIVE FORTY NINE AND TWO
THOUSAND FIFTEEN AUTHORIZED TO
CERTAIN MAJOR LEAGUE SPORTS
ORGANIZATIONS TO OFFER RAFFLES
AT HOME GAMES WHERE 50% OF THE
GROSS REVENUE WENT TO SUPPORT
CHERNOBYL PURPOSES AND THEN 50%.
WENT TO WINNERS --
THESE RAFFLES ARE AUTHORIZED
THROUGH JANUARY FIRST OF TWENTY
TWENTY FOUR IF YOU TRY TO THE
FINAL PAGE OF YOUR HAND OUT IS
PAGE.
SEVEN WE WILL CONCLUDE OUR
COMMENTS WITH FOR EMERGING
ISSUES THAT WE THINK THAT --
WILL BE SUBJECT FOR DISCUSSION
IN THE NEAR TERM WHETHER IT'S
THE NEXT YEAR OR SO.
THE FIRST IS RELATED TO A NEW
SPECIAL FINE CALLED THE TROUBLE
NATION GRANT FUNDS AND SO --
A NUMBER OF THE TRAVEL STATE
CONTACTS REQUIRE THAT TRIBES
MAKE PAYMENTS TO A SPECIAL FUND
CALLED THE REVENUE SHARING TRUST
FUND OR THE RST HALF.
AND THAT IS TO SUPPORT PAYMENTS
TO THE STATE SINCE SEVENTY TWO
NON GAMING OR LIMITED GAMING
TRIBES TO ENSURE THAT THEY GET
ABOUT ONE POINT ONE MILLION
DOLLARS ANNUALLY. TO THE EXTENT
THAT THEY'RE SUFFICIENT PAYMENTS
TO MEET THOSE OBLIGATIONS ANY
EXCESS FUNDS ARE THEN AVAILABLE
TO TRANSFER. TO THIS NEW FIND
CALL THE TROUBLED NATION GRANT
FUND FOR ALLOCATION THROUGH A
COMPETITIVE GRANT PROCESS TO
SUPPORT NON GAMING AND LIMITED
GAMING ACTIVITIES RELATED TO
ECONOMIC DEVELOPMENT AND SELF
SUFFICIENCY.
THAT TROUBLING YOU CAN'T FIND
WAS FIRST INCLUDED IN TWO
THOUSAND TWELVE IN A NUMBER OF
CONTACTS THAT STATE WE REALLY
HAVEN'T HAD SUFFICIENT REVENUE
TO TRANSFER INTO IT.
THAT SEEMS LIKE IT'S GOING TO
CHANGE HIS NAME THAT SEEMS LIKE
IT'S GONNA CHANGE IN THIS COMING
YEAR.
THE GOVERNOR'S BUDGET ESTIMATES
THAT THIRTY NINE POINT THREE
MILLION WILL BE AVAILABLE TO
TRANSFER INTO THE TRAVEL NATION
CAN'T FIND.
AND STATE LAW HAS BEEN ENACTED
TO KIND OF DIG ALL THAT MONEY
WILL GO.
THE SECOND ISSUE IS RELATED TO
THE EXPIRATION OF A NUMBER OF
TROUBLE STATE CONTACTS TO
SPECIFICALLY THERE ARE THIRTY
FIVE TRIBES THAT HAVE CONTACTS
THAT WERE NEGOTIATED IN.
NINETEEN NINETY NINE WERE
SCHEDULED TO EXPIRE ON DECEMBER
THIRTY FIRST OF TWENTY TWENTY
AND SO LIKELY YOU'LL HAVE RE
NEGOTIATIONS OCCURRING BETWEEN
NOW AND THAT.
THE THIRD IS THE AUTHORIZATION
OF SPORTS BETTING.
THE FEDERAL PROFESSIONAL AND
AMATEUR SPORTS PROTECTION ACT OF
NINETEEN NINETY TWO WAS
PREVIOUSLY INTERPRETED TO
PROHIBIT MOST STATE AND LOCAL
GOVERNMENTS FROM AUTHORIZING
WAGERING ON NEARLY ALL SPORTS --
IN MAY OF TWO OF TWO THOUSAND
EIGHTEEN THE US SUPREME COURT
RULED THAT THIS LAW IS GENERALLY
ON UNCONSTITUTIONAL AND THIS LED
TO A NUMBER OF STATES SUCH AS
NEW JERSEY AND NEW YORK.
SUBSEQUENTLY AUTHORIZING SPORTS
BETTING A NUMBER OF STATES
INCLUDING CALIFORNIA STARTED
HAVING DISCUSSIONS ABOUT AND
THAT COULD BE SOMETHING THAT
KIND OF EXTENDS INTO THE NEAR
TERM.
THE FOURTH AND FINAL EMERGING
ISSUE IS THE NEW INTERPRETATION
OF THE WIRE ACT.
AND SO THE FEDERAL WIRE ACT OF
NINETEEN SIXTY ONE GENERALLY
PROHIBITS THE ELECTRONIC
TRANSMISSION OF INFORMATION OR
PAYMENTS THAT FACILITATE THAT
SIR WAGERS ACROSS THE STATE OR
NATIONAL BORDERS.
AND SO NOVEMBER THE US
DEPARTMENT OF JUSTICE ISSUED A
LEGAL OPINION STATING THAT THIS
PROHIBITION APPLIES TO ALL
GAMBLING NOT JUST TO SPORTS WE
DURING WHICH WAS HOW IT WAS
INTERPRETED --
IN TWO THOUSAND ELEVEN AND SO
THAT WILL LIKELY IMPACTS SOME OF
YOUR DISCUSSIONS ABOUT FUTURE
ONLINE GAMING ACTIVITIES ONLINE
POKER EXCITER.
SO THAT WE'RE HAPPY TO ANSWER
ANY QUESTIONS YOU MAY HAVE
[inaudible]
QUESTIONS BROWN.
CENTER JONES.
JUST REAL QUICK ON THE ON PAGE
TO THE TRAVEL GAMING IN STATE
REVENUE MR APOLOGIZE IF YOU DID.
WITH WE WENT FROM THREE HUNDRED
THIRTY MILLION TO THREE POINT
SIX MILLION.
YES SO -- IN
ABOUT TWO THOUSAND AND SIX TWO
THOUSAND AND SEVEN THERE WAS A
CHANGE AND THE TERMS OF A NUMBER
OF CONTACTS THAT WERE NEGOTIATED.
AT THAT TIME A NUMBER OF THE
COMPACTS OF CIVIC OF THE LARGEST
CONTACTS BEGAN REQUIRING
PAYMENTS INTO THE STATE GENERAL
FUND INSTEAD OF THE SPECIAL FUND
CALLED THE SPECIAL DISTRIBUTION
FIND --
THERE WAS LITIGATION RELATED TO
THAT -- IT
WAS BUT IT'S REFER TO THE RING
CONN DECISION AND BASICALLY THE
DECISION SAID THAT UPON
RENEGOTIATION OF THOSE CONTACTS
THE STATE COULD NOT REQUIRE.
PAYMENTS INTO THE GENERAL FUND
AND SO SINCE THEN AS THE
CONTACTS HAVE BEEN RENEGOTIATED
THE AMOUNT OF GENERAL FUND
THAT'S THE AMOUNT OF REVENUE
DEPOSITED INTO THE GENERAL FUND
HAS BEEN DECLINING AND SO NOW
WE'RE AT ABOUT THREE POINT SIX
MILLION DOLLARS FROM.
I THINK ABOUT TWO OR THREE
TRIBES THAT ARE STILL PAYING TO
THE GENERAL FUND.
THOUGH IS THAT MONEY DOWN COMPLY
COMPLETELY OR IT'S GOING INTO A
DIFFERENT FUND NOT THE GENERAL
FUND IS SO IT'S IT'S DISTRIBUTED --
TO DIFFERENT FINES AND THEN
THEY'RE ALSO KIND OF DIFFERENT
TERMS OF IN TERMS IN AGREEMENTS
THAT ARE UNIQUE TO EACH CONTACT
SO -- THERE
TO FIND THE REVENUE SHARING
TRUST FUND THAT I TALKED ABOUT
AS WELL AS OTHER FROM THAT I
REFERENCE THE SPECIAL
DISTRIBUTION FUND WHICH SUPPORTS
THE STATE'S REGULATORY COSTS
PROBLEM GAMING CAUSTIC CETERA.
PRIOR TO SOME OF THESE
RENEGOTIATION BOTH FUNDS HAD
BEEN AN OPERATIONAL SHORTFALL
WHICH BASICALLY MEANS THE AMOUNT
OF MONEY GOING OUT.
WAS EXCEEDING THE AMOUNT OF
REVENUES COMING IN AND SO IN THE
RE NEGOTIATIONS THE GOVERNOR'S
OFFICE ESSENTIALLY HAVE BEEN
RIGHT SIZING THAT MAKING MORE
PAYMENTS INTO THE REVENUE
SHARING TRUST FUND.
AND THEN SIMILARLY ADJUSTING
JEWEL DISTRIBUTION FIND.
THIS NEW FINDS THIS TRIBAL
NATION GRANT FUND THAT WE KIND
OF REFERENCE AS AN EMERGING
ISSUE IS SOMETHING THAT'S ALSO
NEW PRODUCTS RELATED TO THAT AS
WELL.
AND SO THAT IS THE SITUATION OF
TO THE EXTENT THAT THERE'S MORE
MONEY THAT'S AVAILABLE THEN
NEEDS TO BE MADE FOR THOSE ONE
POINT ONE MILLION DOLLARS IN
PAYMENTS THEY CAN THEN GO TO
THESE GRANT PURPOSES.
I THINK YOU WILL ALSO ALSO --
A LOT GOES LOCAL COMMUNITIES YES
ENDS --
THANK YOU SO MUCH --
THERE ARE AGREEMENTS WITH
COUNTIES AND CITIES --
A LOT OF THEM INCLUDE OFFSETTING
AT MINIMUM THE COSTS FOR THE FOR
EXAMPLE LAW ENFORCEMENT ETCETERA
BUT CAN ALSO INCLUDE OTHER TERMS.
RELATED TO ECONOMIC DEVELOPMENT
IN THE COMMUNITIES SCHOOLS PARKS
ETCETERA.
SO RUBIO CONSIDERABLE I JUST
HAVE A QUESTION IN TERMS OF FARM
AID YOU TALK ABOUT THE MERGING
GAMBLING ISSUES UP FROM STATUS
STATE CAN YOU EDUCATE IN TERMS
OF WHAT.
DO WE HAVE IN PLACE TO SAFEGUARD
BETTING ACOSTA LINES --
AS A RIGHT NOW IT'S IT'S KIND OF
A PATCHWORK OF VARIOUS FEDERAL
LAWS -- I
THINK THE FEDERAL WIRE ACT AS
ONE ANOTHER ONE SPECIFICALLY IT
YOU YOU EACH YEAH I I CAN'T
REMEMBER THE EXACT WHAT THAT
ACRONYM STANDS FOR BUT IT
RELATES TO UNLAWFUL CAN INTERACT
ACTIVITY --
SO THERE ARE LAWS IN PLACE
EVENTUALLY.
THEN WITHIN THE STATE REALLY
GAMBLING CONTROL AND IT'S KIND
OF THE ENFORCEMENT RESOURCES
LETTER THERE ARE KIND OF
RESPONSIBLE FOR MANAGING AND
KIND OF FOCUSING ON THAT AND
THAT'S SOMETHING THAT THEY CAN
TALK ABOUT IN A LITTLE MORE
DETAIL WHEN THEY MAKE THEIR
PRESENTATION [inaudible]
THANK YOU.
ALAN.
IT SOUNDS AS THOUGH --
THERE'S THE STATE'S NOT REALLY
GAINING MUCH BY WAY OF REVENUE
STATE OR LOCAL.
ONE WITH THE REST OF THIS.
CAN WE HAPPY IN THE STATE I MEAN
EVER EVERYTHING MOST THE
SIGNIFICANT AMOUNTS OF MONEY
THAT YOU MENTIONED WERE WERE
OFFSETS RIGHT I MEAN WE WOULDN'T
HAVE TO HAVE.
A REGULATORY SYSTEM FOR PROBLEM
GAME IF WE DIDN'T HAVE GAMING.
WE WOULDN'T HAVE TO HAVE THE
ACTUAL POLICE IN THE LOCAL
COMMUNITIES IF WE DIDN'T HAVE --
MINUTE FOR GAMING THERE SO CAN
YOU GIVE IT.
ARE ARE WE NOW AT LEAST.
MAKING MONEY OR OR THE SORRY WE
AT LEAST LIKE LIKE BREAKING EVEN
SOUNDS LIKE BEFORE WE WERE
LITERALLY THE STATE WAS
SUBSIDIZING.
GAMING.
SO I THINK WITH THE DIFFERENT
TYPES OF GAMING THERE ARE
DIFFERENT GOALS --
AND SO FOR EXAMPLE IF YOU'RE
THINKING ABOUT TRIBAL GAMING.
KIND OF THE IMPETUS BEHIND
TRIBAL GAMING IS REALLY THE SELF
SUFFICIENCY AND ECONOMIC
DEVELOPMENT OF THE TRACKS IS
RENT THAT'S ONE CALL --
THEN IF YOU TURN YOUR ATTENTION
FOR EXAMPLES THE CALIFORNIA
STATE LOTTERY ON THAT --
ONE ABOUT IN.
SEVENTEEN EIGHTEEN THE ESTIMATE
IS ABOUT ONE POINT SEVEN BILLION
WILL GO TO EDUCATION --
AND SO THAT IS SOME SUCH A WAY
THAT THE STATE BENEFITS.
I THINK IN IN THE OTHER IN SOME
OF THE OTHER GAMING INDUSTRIES
FOR EXAMPLE LIKE CARD ROOMS AND
FORCED AND THE HORSE RACING
INDUSTRY.
THEY ARE SUBJECT TO BUSINESS AND
INCOME TO CAPTURE AT THIS MOMENT
SO I CAN'T REALLY TELL YOU FOR
EXAMPLE IN THIS IN MY TESTIMONY
THAT CARD ROOMS GENERATED ACTS
MILLION.
AND TAX REVENUE I THINK THAT
THAT'S SOMETHING THAT THE
INDUSTRY AS WELL AS RESEARCHERS
HAVE ATTEMPTED TO IDENTIFY --
AND SO THERE IS REVENUE THAT
COMES IN THERE THERE'S ALSO
REVENUE THAT.
CAN COME IN AT THE LOCAL LEVEL I
THINK THEY'RE CONSTANTLY
DISCUSSIONS ABOUT WHAT IMPACT
THERE IS ON THE LOCAL
GOVERNMENTS CITIES AND COUNTIES
IN WHICH THESE ENTITIES --
OPERATE.
I THINK YOU YOU DO KIND OF
CAPTURE KIND OF THE FLIP SIDE
WHICH IS THERE ARE COSTS.
RELATE AND MOST NOTABLY RELATED
TO LAW ENFORCEMENT FOR EXAMPLE
THAT EAT A LOT OF THE AGREEMENTS
KIND OF FOCUS ON KIND OF AT
LEAST OFFSETTING THE COSTS.
SO WHAT WHAT WHAT WHAT DO WE
WHAT SORT OF TAXATION.
OF GAMBLING PROFITS ARE WE
ENGAGING IN FOR THESE VERY
SECTORS.
OF WHAT MOVES BESIDES FOR FOR
SUPER PROFITS NOT JUST OFFSETS
ACCUSER IS THERE A OBVIOUSLY
THERE'S INCOME TAX ASSOCIATE
WITH ANYONE WHO WORKS IN ANY OF
THESE PLACES BUT IS THERE LIKE A
IS THERE ANY KIND OF BUSINESS
PROFITS TAX FOR A CASINO OR FOR
A CARD ROOM.
THAT'S ONLINE WITH WHAT A
TYPICAL BUSINESS WOULD PAY.
IS SO FOR THE CARD ROOMS ENDS
FOR HORSE RACING A PARTICULAR
SUBJECT TO THE SAME BUSINESS AND
INCOME TAX REQUIREMENTS THAT
OTHER BUSINESSES --
AND BUSINESS OWNERS ARE SUBJECT
TO SO IT'S NOT A SPECIAL TAX AT
LEAST NOT TO MY KNOWLEDGE IS A
LOT OF SPECIAL TAX.
BE DO HEY VARIOUS LICENSING FEES
EXCITER ON TOP OF THAT --
BUT I DON'T KNOW IF THAT ANSWERS
YOUR QUESTION FOR THE CASINOS.
THERE'S NOT A BUSINESS TAX THEY
DON'T HAVE A THE GAS SO IN
TROUBLE BECAUSE HE KNOWS THE
ONLY THE PAYMENTS IS THROUGH IS
THROUGH THIS --
WHETHER THEY'RE SEVEN ASIAN BUT
THERE ARE I THINK THERE'S
BUSINESS ACTIVITIES GOING ON ON
THE RESERVATIONS THAT ARE STILL
LIVES SUBJECT TO OTHER INTO
TAXATION.
SO THE THERE'S THE SOVEREIGN
NATION ISSUE --
TO THE EXTENT THAT IT GENERATES
ECONOMIC DEVELOPMENT IN THE
LOCAL COMMUNITY SO FOR EXAMPLE
THEYHAVE A CONTRACT WITH A
LOCAL PROVIDER IN CITY A CITY A
WILL BE PORTANTINO.
WILL BE PAYING TAXES --
NORMALLY AS PART OF THEIR
BUSINESS OP.
RIGHT BUT I THINK IN IT THE
BROADER ISSUE IS WITH TRIBES
GENERALLY THE AMOUNT OF
OBLIGATIONS THAT THEY PAY
WHETHER IT'S AN TO THE GENERAL
FUND WHICH WE'VE ESTABLISHED IS
NOT VERY MUCH AT THIS POINT OR
INTO ANY OF THE OTHER SPECIAL
FUND IT'S REALLY GOVERNED BY THE
TRIBAL.
STATE COMPACT IN TERMS OF THE
AGREEMENT HAS BEEN REACHED
BETWEEN THE TRIBE AND THE STATE.
MMHM IT A DEAD ON THAT SENATOR --
LIKE ON THE LARGE CARD ROOMS --
CENTER BRADFORD CENTER ARCHER LE
LET HAVE A NUMBER THEM IN THEIR
COMMUNITIES --
FIVE OR SIX MAYBE EVEN SEVEN
COMMUNITIES --
THEY SUPPORT SOMEWHERE BETWEEN
FORTY AND 70% OF THEIR LOCAL
BUDGETS.
SO I MEAN IT'S IT'S IT'S ALIVE
AGAIN COMMERCE AND INDUSTRY LIST
YES. TO NAME A COUPLE.
BUT AND IF I MAY ADD UP I THINK
YOU AND LIKE TO MACULA TO PAY
ALMOST A 100% OF LIKE.
PUBLIC SAFETY ADAM AND TOWN
POLICING CELL.
SOME OF THEM PAY A 100%.
THERE ARE TWO LETTER YES THANK
YOU MISTER CHAIR GOING BACK TO
THE CARDS IN THE CONTRIBUTION
THAT THE MAKE THE CARTILAGE MAKE
TO THE COMMUNITIES.
DO YOU HAVE ANY IDEA WHAT THE
CARD.
CLUBS IN THE LA COUNTY
CONTRIBUTE TO THEIR COMMUNITIES
OVERALL -- I
DON'T HAVE THAT INFORMATION AT
MY FINGERTIPS I THINK --
CARD ROOMS VERY I THINK FROM
CITY FROM CITY TO CITY AND
COUNTY TO COUNTY AND SO THAT
SOMETHING THAT YOU'RE INTERESTED
WERE HAPPY TO FOLLOW UP WITH
YOUR STUFF ON IT WOULD BE SAFE
TO SAY THAT.
SOMEBODY CARD CLUBS IN LA COUNTY --
SUCH AS THE ONES IN A THIRTY
SECOND SENATE DISTRICT --
CONTRIBUTE UP TO SIX OF THE
BUDGET OF THOSE CITIES IS THAT
SOUND FAIR WITH TO INCLUDE FIRE
POLICE SAID.
IN EMPLOYMENT WE WOULD HAVE TO
TAKE A LOOK AT THAT.
THANK YOU IF ANYBODY ELSE.
THANK YOU VERY MUCH.
OKAY WILL CALLED STACY LUNA
BAXTER EXECUTIVE DIRECTOR OF THE
CALIFORNIA GAMBLING CONTROL
COMMISSION [inaudible]
GOOD MORNING [inaudible]
ST.
GOOD MORNING CHAIRMAN DODD
MEMBERS THINK ORDER HAVING ME
HERE TODAY AGAIN I'M STACY LINDA
BAXTER EXECUTIVE DIRECTOR FOR
THE CALIFORNIA GAMBLING CONTROL
COMMISSION.
CARTER AND HAVE OPERATED IN THE
STATE OF CALIFORNIA FOR MORE
THAN A HUNDRED YEARS BUT IN
NINETEEN NINETY SEVEN THE
CALIFORNIA GAMBLING CONTROL ACT
WAS ENACTED TO CREATE A
COMPREHENSIVE STRUCTURE. FOR THE
STATEWIDE REGULATION AND
ENFORCEMENT OF LEGAL CARDROOM
GAMING.
PRIOR TO THIS TIME THE STATE
REGULATION OF CARD ROOMS WAS
MINIMAL.
THE CALIFORNIA GAMING CONTROL
ACT ESTABLISH A BIFURCATED
SYSTEM OF REGULATION AND
ENFORCEMENT WITH THE COMMISSION
AS A REGULATORY.
ENERGY TO KATORI AGENCY.
AND THE BUREAU GAMBLING CONTROL
WITHIN THE DEPARTMENT OF JUSTICE
AS THE ENFORCEMENT AGENCY.
THE ACT ALSO PROVIDES FOR A ROLE
FOR LOCAL GOVERNMENTS AS WELL.
THERE ARE CURRENTLY EIGHTY SEVEN
CARD ROOMS AND SIXTY THREE
TRIBAL CASINOS OPERATING THE
STATE OF CALIFORNIA.
TOGETHER THESE INDUSTRIES HAVE
CREATED PROXIMALLY EIGHTY
THOUSAND JOBS FOR CALIFORNIANS.
BEFORE DISCUSSING THE SPECIFIC
ROLE THE COMMISSION IN
REGULATING THESE TWO SECTORS I
WOULD LIKE TO PROVIDE YOU A
BRIEF OVERVIEW OF THE ROLE FOR
THE LOCAL GOVERNMENTS.
UNDER THE CALIFORNIA GAMELY
CONTROL ACT LOCAL TO ENACT A
MORE STRINGENT CONTROL.
AND IMPOSE ANY LOCAL TAX OR
LICENSE FEE ON CARTER AND SAYS
IN THAT IS NOT INCONSISTENT WITH
THE ACT.
IN ADDITION CARD ON GAMBLING
MUST BE APPROVED BY A LOCAL
GAMING ORDINANCE.
THE ACT OR THE AUTHORIZES LOCAL
JURISDICTIONS TO REGULATE THE
LOCATIONS HOURS NUMBER OF TABLES
AND WAGERING LIMITS OF GAMING
PROMISES.
MOST LOCAL GOVERNMENTS ALSO
ISSUE WORKMEN'S FOR CERTAIN
EMPLOYEES OF A GAMING
ESTABLISHMENTS AS REQUIRED BY
THE ACT.
HOWEVER SOME LOCAL GOVERNMENTS
DO NOT HAVE THE RESOURCES IN IN
THOSE SITUATIONS THE COMMISSION
HANDLES THAT WORKLOAD.
EXISTING LAW PLACES THE
MORATORIUM ON THE EXPANSION OF
GAMBLING WITHIN CARTONS IN ON
NEW LICENSES FOR GAMBLING
ESTABLISHMENTS.
THE MORATORIUM HAS BEEN IN PLACE
SINCE THE ESTABLISHMENT OF THE
COMMISSION.
AND HAS BEEN CONSISTENTLY
EXTENDED.
THE CURRENT SUNSET DATE WAS
EXTENDED TO JANUARY FIRST TWENTY
TWENTY THREE BY THE LEGISLATURE
LAST YEAR.
THE COMMISSION IS AN INDEPENDENT
AGENCY WITH THE JOB.
BECAUSE I DO DASCHLE POWERS
UNDER THE ACT COMMISSIONERS ARE
APPOINTED BY THE GOVERNOR AND
SUBJECT TO CONFIRMATION BY THE
SENATE.
THE COMMISSION CONSISTS OF FIVE
MEMBERS THE ACT INCLUDES VARIOUS
RESTRICTIONS ON MEMBERS OF THE
COMMISSION TO ENSURE INTEGRITY
AND DECISION MAKING.
AND PREVENT CONFLICTS OF
INTEREST.
THE COMMISSION HAS A REGULATORY
ROLE WITHIN THE COMMISSION SENT
THE CARD ROOM INDUSTRY AND
TRIBAL GAMING.
BOTH OF WHOM CONTRIBUTE TO
SPECIAL FUNDS THAT COVER THE
COSTS OF OPERATIONS AT THE
COMMISSION IN THE BEER OF
GAMBLING CONTROL. FOR THE
CURRENT FISCAL YEAR THE
COMMISSION IS AUTHORIZED FOR
THIRTY SEVEN POSITIONS AND A
TOTAL FNDING A SEVEN POINT TWO
MILLION DOLLARS.
AS IT RELATES TO THE CARD ROOM
INDUSTRY THE COMMISSION AS A
DECISION MAKING BODY OVER
GAMBLING ESTABLISHMENTS KNOWN AS
CARD ROOMS AND A THIRD PARTY
PROVIDERS A PROPOSITION PLAYER
SERVICES BUSINESSES.
CARTONS CAN OFFER NON BANK TABLE
GAMES PROVED BY THE BUREAU
GAMBLING CONTROL WHICH MEANS
THAT IN A CARTER AND THE PLAYERS
PLAY AGAINST EACH OTHER NOT THE
CARD ROOM.
OR THE HOUSE AS IS REFER TO IN
TRADITIONAL NEVADA STYLE
GAMBLING.
LICENSE BUSINESSES THAT PROVIDE
SERVICES IN AN TO THE CARD ROOMS
UNDER AN AGREEMENT APPROVED BY
THE BUREAU OF GAMBLING CONTROL.
THE COMMISSION IS ALSO THE
DECISION MAKING BODY OVER ALL
PERSONS IN TRANSACTIONS
REGARDING OWNERSHIP INTEREST IN
CARTOONS AND THIRD PARTY
PROVIDERS.
AND DETERMINES THE SUITABILITY
OF LICENSE HER FOR KIßM PLEASE
WITHIN THE CARD ROOMS AND%
EMPLOYEES WITHIN THE THIRD PARTY
BUSINESSES.
APPLICANTS ARE REQUIRED TO
UNDERGO A BACKGROUND
INVESTIGATION COMPLETED BY THE
BUREAU GAMING CONTROL AFTER
WHICH THE BUREAU'S INVESTIGATIVE
REPORT IS PROVIDED TO THE
COMMISSION. FOR THE
COMMISSIONER'S CONSIDERATION
TERMINATION OF SUITABILITY AT A
PUBLIC MEETING.
THE COMMISSION'S ROLE IS TO TAKE
REASONABLE ACTIONS TO ENSURE
THAT NO IN ELIGIBLE OR
UNSUITABLE PERSONS ARE
ASSOCIATED WITH CONTROLLED
GAMBLING ACTIVITIES.
THE COMMISSION IS ALSO VESTED
WITH THE AUTHORITY TO PROMULGATE
REGULATIONS AS CONSISTENT WITH
THE GAMING CONTROL ACT.
AS IT RELATES TO TRIBAL GAMBLING
THE COMMISSION HAS LIMITED
REGULATORY AUTHORITY AS DIVINE
DEFINED BY THE TRIBAL STATE
COMPACTS NEGOTIATED BY THE
GOVERNOR AND APPROVED BY THE
LEGISLATURE.
IS IMPORTANT TO NOTE THAT THE
CONSISTENT.
WITH THE STATE COMPACTS TRIBES
IN THEIR TRIBAL GAMING AGENCIES
ARE THE PRIMARY REGULAR THAT
REGULATORS OF TRIBAL GAMING.
THE COMMISSION MAKES FINDING THE
SUITABILITY TERMINATIONS FOR
TRIBAL KEY EMPLOYEES VENDORS.
AND CERTAIN FINANCIAL SOURCES.
THIS PROCESS IS SIMILAR TO THAT
OF THE COMMISSION'S ROLE WITH
THE CARD ROOMS IN THE THIRD
PARTY PROVIDERS.
THE COMMISSION ALSO SERVES AS
THE ADMINISTRATOR TO THREE
DIFFERENT FUNDING SOURCES AS YOU
HEARD EARLIER.
THE INDIAN GAMING SPECIAL
DISTRIBUTION FUN THE REVENUE
SHARING TRUST FUND.
AND THE TRIBAL NATION GRANT FUN.
FINALLY THE COMMISSION HAS A
LIMITED ROLE IN DEVELOPING
REGULATIONS RELATED TO THE
COMPACT IN CORONATION WITH THE
TRIBAL STATE ASSOCIATIONS.
THANK YOU AGAIN FOR HAVING ME
AND I'M OPEN TO ANY QUESTIONS
THAT YOU MIGHT HAVE.
THANK YOU ANY QUESTIONS
[inaudible]
CENTER.
THANK YOU THANK YOU MISTER CHAIR.
WANNA TALK ABOUT THE CALIFORNIA
OFFICE OF OF PROBLEM GAMBLING
HUMM I'M JUST CURIOUS.
WHAT WHAT'S THE BUDGET?
AND THEN --
I AM AT HOUSE THE HOUSE HOW DO
YOU DETERMINE HOW MUCH.
INDIAN GAMING SPECIAL
DISTRIBUTION FUNDS ARE
CALCULATED PURSES OTHER SEGMENTS
OF THE GAMING INDUSTRY. FOR THE
OFFICE OF PROBLEM GAMBLING IS
UNDER THE DEPARTMENT OF PUBLIC
HEALTH --
DOT THEIR BUDGET SPECIFICALLY --
BELIEVE IS AROUND FORTY MILLION
DOLLARS THAT'S PROVIDED TO THEM
FOR THEIR STAY OPERATIONS.
AND ALSO ANOTHER FOUR MILLION
DOLLARS FOR LOCAL ASSISTANCE OF
THE PROBLEM GAMBLING --
COUNSELING CENTERS AND THEIR
THEIR EFFORTS FOR PROBLEM
GAMBLING. FIVE WE DO NOT
DETERMINE THE AMOUNT SIDE WITH
IN THE TRIBAL STATE COMPACT
NEGOTIATIONS HANDLED BY THE
GOVERNOR'S OFFICE.
DO YOU COORDINATE WITH THE
COUNTY IS TO MAKESURE THAT
THOSE FUNDS ARE --
FISSION LEE AND EFFECTIVELY
SPENT.
WE DO NOT THE OFFICE OF PROBLEM%
GAMBLING DOES IN ANY AUDITING
INVOLVEMENT MAY CAME UNDER THE
PAIR OF GAMBLING CONTROL.
WHAT'S THEIR BUDGET GINA --
OF GAMBLING CONTROLS BUDGET ALL
THE OFFICE OF PROBLEM GAMBLING I
BELIEVE IT'S AROUND FOUR MILLION
BUT I DO NOT HAVE THOSE FIGURES
AROUND AND FROM ME AT THIS TIME.
SPEAKER PROBABLY --
OKAY.
THE SALES YES CENTER ARCHULETA --
THANK YOU FOR BEING HERE TODAY
WOULD WOULD IT BE SAFE TO SAY
THAT YOUR OFFICE SAID YOURSELF.
AXES A THIRD NEUTRAL PARTY
BETWEEN ALL THE GAMBLING
ENTITIES BRINGING PEOPLE
TOGETHER. TO NEGOTIATING ISSUES
OR PROBLEMS THAT MAY HAVE.
WE CERTAINLY TRY TO FILL THAT
ROLE WE DO ALSO HAVE A GAMING
POLICY ADVISORY COMMITTEE THAT
SPECIFICALLY FOR THE CARTER
INSIDE NOT THE TRIBAL SIDE --
IS A FORM IN WHICH THEY CAN
BRING ISSUES UP FOR OUR
CONSIDERATION UNDER THE
COMMISSION.
AND COULD YOU GIVE ME AN EXAMPLE
OF HOW SUCCESSFUL YOU'VE BEEN.
IN THAT THIRD IN OUR THIRD
NEUTRAL PARTY ROLE IN BRINGING
PEOPLE TOGETHER.
WELL WE HAVE --
WHEN THERE ARE ISSUES THAT COME
UP WITHIN OUR INDUSTRY --
OBVIOUSLY ONE WAY OF OF
ADDRESSING SOME OF THOSE ISSUES
MIGHT BE THROUGH THE REGULATORY
PROCESS AND IN THOSE REGULATORY
PROCESS WE OFFER A VERY OPEN A
FORM IN WHICH THE STAKE HOLDERS.
ARE ABLE TO PRIDE COMMENTS TO AN
EXTRA EARNS.
WE HOLD MULTIPLE WORKSHOPS WHEN
ANY OF THOSE ISSUES TO COME UP --
BEFORE WE ACTUALLY GO INTO THE
OFFICIAL RULE MAKING PROCESS.
A IT WE ALSO ENTERTAIN ANY
CONCERNS OR QUESTIONS THAT THEY
HAVE.
AFTER EACH MEETING THAT WE HAVE
IT'S A PUBLIC MEETING HELD BY
THE COMMISSION WE ALSO OFFER THE
FORM OF PUBLIC COMMENT --
SO IF ANY CONCERNS THAT THEY'D
LIKE TO BRING FOR TO THE
COMMISSIONERS THEY'RE ALSO ABLE
TO DO THAT AT THAT POINT IN TIME
[inaudible]
THANK YOU.
CHAIRMAN YES SIR RUBIO AS I HAVE
A QUESTION I'M SORRY I DON'T
HAVE THE SENATOR I RATED
SOMEWHERE BUT I KNOW THAT SOME
FUNDING GOALS --
TO AS TRY AND I HELP PEOPLE WITH
GAMBLING ADDICTION.
AND CAN YOU.
GIVE ME SOME INFORMATION TERMS
OF THE DATA THAT'S COLLECTED TO
SEE WHAT THOSE NUMBERS LOOK LIKE
WHAT COMMUNITIES ARE MORE
IMPACTED.
AND HOW THAT MONEY SPENT TO HELP
OUT WITH THAT ADDICTION SURE --
I CAN'T THE BEST OF MY KNOWLEDGE
AGAIN THE OFFICE OF PROBLEM
GAMBLING IS WITHIN THE
DEPARTMENT OF PUBLIC HEALTH --
I DO KNOW FOR EXAMPLE MARCH IS
PUBLIC AWARENESS FOR PROBLEM
GAMBLING MONTH AND THEY PROVIDE
A NUMBER OF STATISTICAL DATA --
ACTUALLY TO THE COMMISSION IN
OUR NEXT FEEDING OUR PUBLIC
MEETING SO WILL ACTUALLY BE
RECEIVING THAT STATISTICAL
INFORMATION OURSELVES BUT THEY
DO GATHER INFORMATION IN TERMS
OF THE NUMBER OF COUNCILLORS
THAT THEY HAVE AVAILABLE TO
OFFER SERVICES --
THE VARIANCE OF LANGUAGES THAT
THE TARGET IN TERMS OF AREAS
THAT THEY HAVE --
PROVIDED STUDIES THAT NEED THAT
THEY ALSO PROVIDE STATISTICS AS
TO THE INDIVIDUALS THAT HAVE
GONE THROUGH THEIR TREATMENT
SERVICES --
BUT THAT WOULD ALL BE UNDER THE
OFFICE OF PROBLEM GAMBLING.
DO WE GET THAT NATURALLY AS A
BODY OR DO WE HAVE TO WILL SEEK
OUT THE INFORMATION.
I AM NOT CERTAIN IF THEY HAVE
MANDATORY REPORTS THAT THEY NEED
TO REPORT TO YOU BUT I'M WELCOME
I I'D BE WILLING TO FOLLOW UP
WITH THAT INFORMATION FOR YOU IF
YOU'D LIKE.
THANK YOU.
AN ADDITIONAL.
A IN IN REFERENCE TO SECURITY
AND AN INDIA ALL THE
ESTABLISHMENT SCISSORS STANDARDS
THAT YOU OVERSEE TO MAKE SURE
THAT AN OF PERSONNEL --
PUBLIC COMPLAINTS ISSUES AND
THINGS OF THAT NATURE WHEN YOU
GET INTO PUBLIC SAFETY AND
SECURITY.
PARKING AREAS AND SECURITY
LEVELS PARKING AREAS AND SO ON
YEAH OVERALL SECURITY YES THREE
BE GAMBLING CONTROL COMMISSION
HAS PROMULGATED REGULATIONS THAT
ESTABLISH MINIMAL INTERNAL
CONTROLS FOR EACH OF THE CARD
ROOMS THAT.
HAVE --
REQUIREMENTS WITH REGARDS TO
SURVEILLANCE --
RESPONSIBILITIES SECURITY OF
THAT SUCH YES --
GOOD THANK YOU.
SIR WILK.
THANK YOU MISTER CHAIR A DURING
YOUR COMMENTS YOU MNTIONED THAT
THE TWO TRIBES SIR RESPONSIBLE
FOR THEIR OWN LICENSING SO THAT
DOES NOT FALL UNDER.
THE AUSPICES OF THE STATE SO I'M
CURIOUS HOW THE CALIFORNIA
GAMBLING CONTROL COMMISSION THE
BUREAU OF GAMING CONTROL --
DECIDES ON THE PRO RATED SHARE.
OF TERRY COSTS FOR IT INDIAN
TRIBES.
SO THAT IS OUTLINED WITHIN THE
TRIBAL STATE NEGOTIATIONS ON IS
HANDLED BY THE GOVERNOR'S OFFICE
HOWEVER I CAN TELL YOU IS JUST A
PROUDER PERRETTA SHARE THAT IS
EQUALLY DISTRIBUTED AMONGST
THOSE INDIVIDUALS THAT
CONTRIBUTE TO THE SPECIAL
DISTRIBUTION FINE.
NUMBER LICENSING AND AND SO
THERE'S THERE'S NO --
CALCULATIONS AND STATE ALREADY
DO THEIR LICENSING IS THERE IS
EVERY PAYING THE SAME SAME
AMOUNT EVEN THOUGH.
THEY'RE RESPONSIBLE FOR THEIR
OWN LICENSING. FOR INDIVIDUALS
CONTRIBUTING HOWEVER THERE ARE
STILL STATE REGULATORY COSTS IN
WHICH THOSE TO GO TO FIND.
BECAUSE THE TRIBAL STATE
COMPACTS ALSO REQUIRE EVEN
THOUGH THEY HAVE BEEN LICENSED
BY THE TRIBE.
THAT THEY STILL HAVE TO COME
FORWARD FOR FINDING OF
SUITABILITY WITH THE STATE RIGHT
THANK YOU.
UP I'M KIND OF A QUESTION YOU
KNOW THE CARD INDUSTRY --
CARD ROOM INDUSTRY IS EXPRESSING
CONCERN THAT THE BIFURCATED
SYSTEM OF LICENSING ENFORCEMENT.
BETWEEN THE COMMISSION AND THE
BUREAU OFTEN --
CAUSES SOME DELAYS.
I'M WONDERING WHAT YOUR TAKE ON
THAT IS IF THT'S IN FACT THE
CASE IN THE NET WHAT'S
RELATIONSHIP BETWEEN.
THE BEER ON THE COMMISSION.
WE HAVE AN EXCELLENT
RELATIONSHIP BETWEEN THE BUREAU
AND THE COMMISSION --
WE DO WORK IN CONCERT WITH EACH
OTHER ON ARE MATTERS THAT WE
HAVE OVERSIGHT OF WHEN
APPROPRIATE.
I I DON'T THINK IT IT'S BEEN A
SECRET THAT THERE'S BEEN A
BACKLOG WITHIN THE BUREAU FAMILY
CONTROL WITH REGARDS TO
PROCESSING APPLICATIONS WHICH
WILL LIKELY SPEAK UPON WHEN
THEY'RE UP HERE.
AYE WITH REGARDS TO ONCE HE GETS
TO THE COMMISSION'S WE WE DO BE
ARE MANDATORY TIME FRAMES IN
ORDER -- TO
PUT THOSE IN FRONT OF THE
COMMISSIONERS FOR THE DECISION.
BYE BYE YES WITH THE BIFURCATED
SYSTEM.
AS THE BUREAU GAMBLING CONTROL
HANDLES CERTAIN.
THE REGULATION AND THE
COMMISSION HANDLES THE OTHER.
I DON'T KNOW IF THAT ANSWERS
YOUR QUESTION DIRECTLY THE I
THINK IT'S OKAY.
IT DOES.
OKAY ANY OTHER QUESTIONS YES.
SO LARGE LEAD WHEN ADDITIONAL
QUESTION TANK YOU SO MUCH DO
YOU -- AS
COMMISSIONER EVER --
INVITE THE MAYORS OF EACH OF THE
CITIES OR THE CITY MANAGER TO
BEACHES CITIES TO COME TOGETHER
WITH YOU JUST.
TO BE BRIEFED ON WHAT YOU'RE UP
TO THE COMMISSION'S UP TO AND
WHAT YOU'RE LOOKING FOR THEM
WITHIN THEIR CITIES AND AND THE
CARD CLUBS IN THIS CASE --
WERE ABLE TO COME TOGETHER TO
EVER HOLD TYPE OF FOR
INFORMATIONAL --
HEARINGS I GUESS YOU'D CALL.
WE HAVE NOT --
OVER THE MOST RECENT PASS I
CAN'T RECALL THAT WE'VE DONE
SPECIFICALLY THAT HOWEVER --
WITHIN THE THE GAINING POLICY
ADVISORY COMMITTEE THERE'S
ACTUALLY ONE POSITION THAT IS --
IDENTIFIED FOR LAW ENFORCEMENT
ON TO COME IN AND HOLD THAT C.
M. BRING FORWARD ANY ISSUES THAT
THOSE LOCALS MIGHT HAVE.
AND AGAIN WE HAVE A NUMBER OF
PUBLIC FORMS IN WHICH THEY ARE
AVAILABLE TO HAVE ANY INDIVIDUAL
COMING MAKE PUBLIC COMMENT.
WOULDN'T IT BE A GOOD IDEA
PERHAPS IN THE FUTURE FOR
YOURSELF TAKING THE LEAD TO
BRING IN IN THE CITY MANAGER'S
AND MAYORS.
EACH OF THESE COMMUNITIES SO YOU
CAN HAVE FIRST HAND INFORMATION
AND HOW THEY'RE AFFECTING THE
COMMUNITIES AND NOW THEY'RE
INVOLVED.
NOT ONLY PUBLIC SAFETY BUT
COMMUNITY INVOLVEMENT AND
BECAUSE WE HEARD EARLIER THAT --
SO MANY THE CARD CLUBS
PARTICIPATE SO MUCH WITHIN THE
COMMUNITIES AND EXACTLY WHAT
THAT MEANS AND AND THE IMPACT IT
MAY HAVE WITHIN THE COMMUNITIES.
YES DEFINITELY A GOOD IDEA I
ALSO KNOW THAT THE BUREAU OF
GAMBLING CONTROL HOLD HELD A
NUMBER OF WORKSHOPS ACROSS THE
STATE --
WHICH A NUMBER OF LOCAL ENTITIES
BEYOND.
MAYOR SPEAKERS FROM THOSE LOCAL
ENTITIES HAVE COME FORWARD AND
AND PROVIDED COMMENTS JUST AS
YOUR IN IN AND AND THE REASON I
BRING THAT UP IS TO BE PROACTIVE
WITH THE ISSUES THAT MAY COME UP.
BECAUSE AND AGAIN AS YOU
MENTIONED YOU ARE THE THIRD
NEUTRAL PARTY TO BRING PEOPLE
TOGETHER THAT WOULD BE A PERFECT
FORUM. TO LISTEN TO THE MAYORS
AND CITY MANAGERS AND AND MAYBE
EVEN SOME OF THE PARTICIPATES
THE OWNERS AND THE GENERAL
PUBLIC.
SO YOU HAVE FIRST HAND
INFORMATION IF I COULD RECOMMEND
THAT ABSOLUTELY I WILL TAKE THAT
RECOMMENDATION OF WE ARE.
WE ARE BOUND BY THE GAMING
CONTROL ACT AND WE FOLLOW WHAT
THE GAMBLING CONTROL ACT
REQUIRES US SO THERE WOULD IN
THOSE PARTICULAR SITUATIONS
THERE MIGHT NOT BE.
FLEXIBILITY FOR CHANGES HOW
WELCOME TO HEAR ANYBODY'S
COMMENTS AND DEFINITELY WILL
TAKE YOUR RECOMMENDATION THANK
YOU IN IN THE SPIRIT OF OPEN
BUSINESS YES THANK YOU.
OKAY SLOW BACK SIR THANK YOU
VERY MUCH THANK YOU THIS MORNING
FOR ****.
IT THIS TIME ABOUT A CALL UP US
DEFINITION MAZU DIRECTOR BUREAU
OF GAMBLING CONTROLLED
CALIFORNIA DEPARTMENT OF JUSTICE.
GOOD MORNING MORNING.
JIM DODD MEMBERS OF THE
COMMITTEE MY NAME IS DEFINITION
MAZU AND I'M THE DIRECTOR OF THE
BUREAU OF GAMMA CONTROL WITHIN
THE CALIFORNIA DEPARTMENT OF
JUSTICE.
AND ON BEHALF OF ATTORNEY
GENERAL.
WE WANT TO THANK YOU FOR THE
OPPORTUNITY TO BUT THE BUREAU
COME AND TALK ABOUT WHAT'S FOR
ITS ROLE IN GAMING IN THE STATE.
SO THE BUREAU'S BROAD MISSION IS
TO ENSURE THAT THE AND TO ENSURE
THE INTEGRITY OF GAMING IN
CALIFORNIA.
BY WORKING TO ENSURE THAT LEGAL
GAMBIT ACTIVITIES ARE CONDUCTED
HONESTLY COMPETITIVELY AND FREE
FROM CRIMINAL AND CORRUPT
ELEMENTS.
SO WE'RE GOVERNED BY THE GAMING
CONTROL ACT WHICH ESTABLISHES AS
WE JUST TALKED ABOUT THE BIKE
THE BIKE HATED REGULATORY SYSTEM.
WHEREBY THE BUREAU SERVICE IN AN
INVESTIGATIVE AND ENFORCEMENT
ROLE AND THE COMMISSION SERVICE
IN IN JUPITER ROLE.
SO BUREAU STAFF PROVIDE
REGULATORY OVERSIGHT COMPLIANCE
ENFORCEMENT FOR EIGHTY SEVEN
LICENSE CARD ROOMS. THIRTY FOUR
THIRD PARTY PROVIDER COMPANIES
AND THEIR EMPLOYEES.
STAFF ALSO HAS COMPLIANCE IN
OVERSIGHT RESPONSIBILITIES ON
BEHALF OF THE STATE. FOR SIXTY
THREE TRIBAL CASINOS AS OUTLINED
IN THOSE TRAVEL STATE COMPACTS.
THE BILL CURRENTLY HAS TWO
HUNDRED TWENTY SIX AUTHORIZED
POSITIONS FORTY SEVEN OF THOSE
ARE PEACE OFFICERS.
AND A BUDGET OF ABOUT THIRTY
THREE MILLION.
OUR FUNDING COMES FROM TO
SPECIAL FUNDS THE GAMMA CONTROL
FUND INTO WHICH CARD ROOMS IN
THIRD PARTY THIRD PARTY
PROVIDERS.
A PAY AND THE INDIAN GAMING
SPECIAL DISTRIBUTION FUND WHICH
RECEIVES FUNDS FROM GAMING
TRIBES IN THE STATE.
SO CURRENTLY WE DON'T HAVE ANY
GENERAL FUND MONIES.
TO MR ZERO STAFF IS LOCATED HERE
IN SACRAMENTO BUT WE ALSO HAVE
OFFICES IN REDDING FRESNO
RIVERSIDE LOS ANGELES AND SAN
DIEGO.
THE BILL HAS A VARIETY OF
RESPONSIBILITIES AND IS COMPOSED
OF THE FOLLOWING SECTIONS TO
HANDLE OUR WORK.
LICENSING COMPLAINT ENFORCEMENT
AUDITS IN COMBAT COMPLIANCE
SPECIAL PROGRAMS AND
ADMINISTRATION.
SO EACH OF THE SECTIONS HELPS TO
ME THE BILL'S MISSION AND ALL GO
BRIEFLY THROUGH EACH OF THE
SECTIONS.
THE LICENSING SECTION CONSISTS
OF ABOUT A ONE HUNDRED STAFF
MEMBERS TO CONDUCT BACKGROUND
INVESTIGATIONS OF APPLICANTS
REQUESTING REGISTRATIONS LICENSE
AND WORK PERMITS FOR KARDAM
CENTER PARTY PROVIDERS.
THIRD PARTY PROVIDERS A
COMPANIES OF THE SILTY THE PLAY
A CARD FOR THE PLAY GAMES AND
CARD GAMES BY TAKING THE PLAYER
DID A POSITION AT THE TABLE.
IN ADDITION PERCENT TO CONTACTS
NO SHE NEGOTIATED BETWEEN
CALIFORNIA TRIBES AND THE
GOVERNOR.
A STATE CERTIFICATION PROCESS
WAS ESTABLISHED WHEREBY ALL
GAMING RESOURCE SUPPLIERS
FINANCIAL SOURCES IN KEY
EMPLOYEES THEIR ISSUE GIVE ME
LICENCES.
BY THOSE TRIBAL GAMING AGENCIES.
ARE --
REQUIRED TO SUBMIT APPLICATIONS
TO THE BUREAU AND THE WE DO A
FINDING OF SUITABILITY
INVESTIGATION --
THESE INVESTIGATIONS ALL THESE
INVESTIGATIONS CAN BE EXTREMELY
COMPLICATED AND TIME CONSUMING
AND ARE USED TO DETERMINE
WHETHER AN INDIVIDUAL IS IN
COMPLIANCE WITH REQUIREMENTS OF
THE ACT.
AND AS A PERSON OF HONESTY
INTEGRITY AND GOOD CHARACTER.
AND THESE INVESTIGATIONS --
SERVICE A BASIS FOR SUITABILITY
DETERMINE DETERMINATIONS THAT
THE GALLON FAMILY CONTROL
COMMISSION DOES. TO THE SCOPE OF
EACH SUITABILITY INVESTIGATION
VARIES DEPENDING ON LICENSE TYPE.
APPLICANT AND COMPLEXITY OF THE
APPLICANTS HISTORY.
RESEARCH AND ANALYSIS IS
CONDUCTED ON EACH APPLICANTS --
BACKGROUND AND WE UTILIZE
VARIOUS PUBLIC PRIVATE AND
PERSONAL SOURCES --
TO CHECK ON ALL OF THE
INFORMATION PROVIDED ALSO THE
FINANCIAL RECORDS OF BUSINESS
OWNERS AND ENTITIES ARE CLOSELY
EXAMINED TO VERIFY THAT ALL
PERSONS WITH OWNERSHIP INTEREST
OR CONTROL.
IN THE GAMBLING OPERATION ARE
IDENTIFIED AND PROPERLY LICENSED.
TO AN ADDITION TO CITY BILLION
DESTINATIONS THE LICENSING
SECTION IS ALSO RESPONSIBLE FOR
INTAKE AND PROCESSING OF ALL THE
APPLICATIONS AND FEES WE RECEIVE.
IN TWO THOUSAND SEVENTEEN
EIGHTEEN WE RECEIVED OVER FIVE
THOUSAND APPLICATIONS.
WE ALSO REVIEW AND APPROVE OR
DENY ALL THIRD PARTY PROVIDER
CONTRACTS THOSE ARE CONTRACTS
BETWEEN THE THIRD PARTY AND THE
GAMBLING ESTABLISHMENTS.
WE REVIEW AND APPROVE OR DENY
ALL CONTROL GAMES AND GAMING
ACTIVITIES.
WE REVIEW AND COMMENT ON ALL
PROPOSED LOCAL GAMING ORANGES TO
ENSURE COMPLIANCE WITH AGAIN THE
CONTROL ACT.
AND WE REVIEW AND RECOMMEND
APPROVAL DENIAL UNDER QUESTION
CARD ROOMS TO INCREASE THE
NUMBER OF TABLES THEY OPERATE.
THE COMPLAINT IMPORTANT SECTIONS
AND CRIMINAL INVESTIGATIVE
ENFORCEMENT CAPACITY.
THIS SECTION IS COMPOSED OF
SPECIAL AGENTS A FIELD
REPRESENTATIVES --
ANALYSTS AND SUPPORT STAFF.
THE BUREAU CONDUCTS CRIMINAL
INVESTIGATIONS INTO THINGS LIKE
ORGANIZED CRIME MONEY LAUNDERING
BOOK MAKING THE THEFT FRAUD
EMBEZZLEMENT ROBBERY.
LOAN SHARKING ON OUR KIND OF
ACTIVITY CHEATING AND TRANS
NATIONAL GANGS.
ADDITIONALLY LOCAL STATE AND
FEDERAL LAW ENFORCEMENT AGENCIES
FREQUENTLY REQUEST ASSISTANCE
FROM OUR SPECIAL AGENTS. TO HELP
WITH ILLEGAL IN GAMBLING
INVESTIGATIONS ALSO WITH
TRAINING IN COURTROOM TESTIMONY.
THIS SECTION ALSO CONDUCTS
GAMING RELATED INVESTIGATIONS IN
COURTROOMS IN TROUBLE BECAUSE HE
KNOWS.
IT WORKS WITH AND ASSIST THE
LICENSING SECION ON BACKGROUND
INVESTIGATIONS OF APPLICANTS IF
IT'S NECESSARY --
IT ALSO CONDUCTS CRIMINAL
INVESTIGATIONS FOR CRIMES
OCCURRING AT TRIBAL CASINOS AND
CARD ROOMS --
THEY CONDUCT ROUTINE CARD
INSPECTIONS SOMETIMES IN AN
UNDERCOVER CAPACITY.
AND CONDUCT CONTACT COMPLIANCE
INSPECTIONS AT THE TRIBAL
CASINOS.
OTHER GAMING RELATED
INVESTIGATIONS THAT MAY
POTENTIALLY VIOLATE THE TRIBES
CONTACTED RIGHT TO OFFER CLASS
THREE GAME IN SUCH A SLOT
MACHINES.
ARE ALSO CONDUCTED SPECIAL
AGENTS AND ASSIST WITH
INVESTIGATIONS ON INTERNET CAFES
ILLEGAL SLOT MACHINES AND LEGAL
HOME GAMES ACTIVITY ACTIVITIES
WHICH VIOLATE STATE AND FEDERAL
LAW. TO THE AUDITS AND COMBAT
COMPLIANCE SECTION CURRENTLY HAS
FORTY ONE AUTHORIZED POSITIONS.
THE MAJORITY OF FROM OUR
AUDITORS --
THE CONDUCT COMPLIANCE REVIEWS
PURSUANT TO TROUBLE STATE GAMING
COMPACTS AS WELL STATUTES AND
REGULATIONS PERTAIN TO CARD
GAMES IN THE STATE. FOR TRIBAL
GAMING OUR STAFF CONDUCTS AUDITS
OF PAYMENTS TO THE SPECIAL
DISTRIBUTION FUN TO THE REVENUE
SHARING TRUST FUND.
AND TO THE GENERAL FUND AND
OTHER REVENUE CONTRIBUTIONS
PROVIDED FOR IN THE COUNT
CONTACTS WHICH WILL ALSO INCLUDE
THE TRIBAL NATION BROWN FUN.
AND THESE AUDITS ARE CONDUCTED
AT LEAST EVERY TWO YEARS.
STAFF ALSO CONDUCTS ANNUAL VIEWS
TO ENSURE THAT NON GAMING AND
LIMóN GAMING TRIBES ARE
ELIGIBLE TO RECEIVE THEIR
DISTRIBUTION FROM THE R. S. TF.
AN REVIEWS TRIBAL MINIMUM
INTERNAL CONTROL STANDARDS FOR
CLASS THREE GAMING AT LEAST
EVERY TWO YEARS.
WE ALSO CONDUCT ONSITE
INSPECTIONS AND REVIEW REPORTS
FROM TRIBAL GAMING AGENCIES AND
INDEPENDENT GAME LABORATORIES.
TO INSURE SOFTWARE AND
ELECTRONIC GAMING DEVICES SLOT
MACHINES COMPLY WITH
MANUFACTURER STANDARDS AND
TRIBAL GAMING AGENCIES.
REGULATIONS ARE THESE HAVE
REVIEWS OCCUR ABOUT FOUR TIMES A
YEAR.
ADDITIONALLY THE SECTION PLAYS
AN IMPORTANT ROLE IN ADDRESSING
THE MORE COMPLICATED FINANCIAL
ASPECTS OF THE BUREAU'S
FINANCIAL SUITABILITY
INVESTIGATIONS FOR CARD ROOMS
VENDORS AND THEIR PARTY
PROVIDERS.
AS WELL AS ASSISTING IN THE
COMPLEX COMPLIANCE ENFORCEMENT
SECTION IN ITS CRIMINAL
INVESTIGATIONS INVOLVING COMPLEX
FINANCIAL MATTERS.
THE SECTION ALSO CONDUCTS ON
SITE FINANCIAL EVALUATIONS OF
GAMBLING ESTABLISHMENTS IN
TRIBAL CASINOS WHICH INVOLVES
ANALYSES OF FINANCIAL
DOCUMENTATION IN ORDER TO INSURE
PROPER INTERNAL CONTROLS.
AND ACCOUNTING PRACTICES ARE
MAINTAINED.
FINALLY THIS SPECIAL PROGRAM
SECTION CONSISTS OF THOSE
PROGRAMS OF THE HIGH LEVEL OF
SENSITIVITY WITHIN THE BUREAU.
THE SESSION CONSIST OF THE
CRIMINAL INTELLIGENCE UNIT
RESPONSIBLE GAMBLING PROGRAM
REGULATIONS AND LEGISLATION UNIT
NONPROFIT ORGANIZATION GAMBLING
FUND RATE SIR REGISTRATION
PROGRAM.
AND THE MAJOR LEAGUE SPORTS
TRAVEL PROGRAM.
NOW GO THROUGH EACH OF THOSE
QUICKLY. TO THE CRIMINAL
INTELLIGENCE UNIT WAS
ESTABLISHED TO COLLECT COLLATE
ANALYZE AND DISSEMINATE
INFORMATIONS TO COURTROOMS IN
TROUBLE CASINOS.
REGARDING INDIVIDUALS SUSPECTED
CRIMES IN THE GAMING INDUSTRY TO
IDENTIFY CRIME TRENDS AND
CONDUCT OTHER TEST YOU NEED TO
INTELLIGENCE GATHERING. TO THE
UNIT DISSEMINATES --
BULLETINS FOR PARTNERS LAW
ENFORCEMENT.
FOLKS IN THE GAMBLING INDUSTRY.
TO AN ATTEMPT TO WORK TOGETHER
TO ASCERTAIN INFORMATION VITAL
TO ONGOING INVESTIGATIONS INTO
CRIMES SEVERAL TALKING TOGETHER.
THE BEARS RESPONSIBILITIES AS A
PERTAINS RESPONSIBLE GAMBLING
INCLUDE ADMINISTRATION AT THE
STATE WHAT EXCLUSION PROGRAM
WHICH IS A PROGRAM WHEREBY
INDIVIDUALS CAN VOLUNTARILY
EXCLUDE THEMSELVES FROM CARTONS
IN THE STATE.
THEY MAINTAINED EXCLUSION
MANAGEMENT SYSTEM WHICH IS A
DATABASE WHICH PROVIDES A
CLEARINGHOUSE OF INFORMATION FOR
COURTROOMS TO VERIFY A PATRON
SELF EXCLUSION STATUS --
DISSEMINATION OF RESPONSIBLE
GAMING INFORMATION AND
ADMINISTRATION OF THE
INVOLUNTARY EXCLUSION LIST.
REGULATIONS LEGISLATION UNIT IS
RESPONSIBLE FOR PROMULGATING
REGULATIONS --
AND FACILITATING COMMENTS
PROVIDED BY THE BUREAU TO THE
COMMISSION FOR THEIR REGULATIONS.
IS ALSO RESPONSIBLE FOR TRACKING
LEGISLATION AND PROVIDING BILL
ANALYSES.
THE CHARITABLE GAMING SECTION
CAN REGISTER AS QUALIFIED
NONPROFIT ORGANIZATIONS AND
SUPPLIERS OF A QUICK MINUTE
SERVICES. FOR FUND RAISING
EVENTS THAT USE CONTROL GAMES
SUCH AS PROGRAM HIGH GO. TO
RAISE FUNDS FOR CHARITIES.
THERE OVER ONE HUNDRED THOUSAND
CHARITIES IN CALIFORNIA THAT MAY
BE ELIGIBLE TO REGISTER TO
CONDUCT CONTROL GAMES AS A FUND
RAISING MECHANISM --
DURING FISCAL YEAR SEVENTEEN
EIGHTEEN THE BEER RECEIVE FIVE
HUNDRED FIFTY APPLICATIONS AND
REGISTER THREE HUNDRED NINETY
SEVEN NONPROFIT ORGANIZATIONS.
THE BEER ALSO CURRENTLY HAS
RESPONSIBILITY OF ADMINISTERING
THE MAJOR LEAGUE SPORTS RENTAL
PROGRAM.
THE PROGRAM ALLOWS ELIGIBLE
ORGANIZATIONS TO CONDUCT RAFFLES
AND MAJOR LEAGUE SPORTS HOME
GAMES IN THE STATE OR BY 50% OF
THE GROSS RECEIPTS GENERATED
FROM THE SALE OF THE ROCKETS
TICKETS.
MUST BE USED TO BENEFIT PROVIDE
SUPPORT THIS AND THE OTHER 50%
MUST BE PAID TO THE WINNER WHICH
IS COMMON BY A MANUAL DROPPED
THE GAMES.
THE BUREAU REGISTERS ELIGIBLE
ORGANIZATIONS AND OTHERS AND IS
AUTHORIZED TO CONDUCT AUDITS IN
A FORCE REQUIREMENTS OF THE
PROGRAM.
BECAUSE THE DEPARTMENT WAS NOT
PROVIDED OF FUNDING FOR ANY OF
ITS AUDIT ENFORCEMENT
RESPONSIBILITIES WE INCREASE THE
AMOUNT OF REGISTRATION FEES
THREE EMERGENCY REGULATIONS --
THIS PAST DECEMBER AND WE'RE
CURRENTLY GOING THROUGH THE
REGULAR RULEMAKING PROCESS FOR
THOSE FEES.
SO THAT IS WHAT THE BUREAU DOES
THERE'S A FEW --
ISSUES THAT I WANTED TO BRING UP
SOME OF YOU MAY HAVE HEARD ABOUT --
FIRST OF ALL WE ARE FACING A
POTENTIAL LOSS OF THIRTY TWO
POSITIONS THE LICENSING SECTION --
IN FISCAL YEAR FIFTEEN SIXTEEN
THE BEER OBTAIN TWELVE POSITIONS
TO ADDRESS THE BACKLOG OF
LICENSING APPLICATIONS.
OF THE FOLLOWING YOUR SIXTEEN
SEVENTEEN THE LEGISLATURE
PROVIDED THE BUREAU WITH AN
ADDITIONAL TWENTY POSITIONS FOR
THIS PURPOSE.
A WE THINK THE MEMBERS OF THIS
COMMITTEE AND THE LEGISLATURE
FOR THOSE POSITIONS ARE VERY
HELPFUL.
OF THE ADDITION OF THE POSITIONS
CONTRIBUTED TOWARD THE ACTION IN
THE LICENSING BACKLOG --
SO FOR EXAMPLE IN JUNE OF TWO
THOUSAND SIXTEEN THERE WAS A
BACKLOG OF THREE THOUSAND TWENTY
NINE APPLICATIONS.
AFTER THE ADDITION OF THE THIRTY
TWO POSITIONS IN THE RECORD
ONBOARDING TRAINING THE BACKLOG
WAS JUST CREASE TO ONE THOUSAND
SEVEN HUNDRED AND SEVEN HUNDRED
NINETY SEVEN APPLICATIONS BY
JUNE.
THE ADDITIONAL POSITIONS
INITIALLY PROCESS THE LESS
COMPLICATED APPLICATIONS AND
HAVE RECENTLY TRANSITIONED TO
PROCESSING THE MORE DIFFICULT
AND COMPLEX ONCE.
WHILE THESE POSITIONS WERE FULL
TIME PERMANENT THE BUREAU HAS
ONLY RECEIVED LIMITED --
LIMITED TERM FUNDING FOR THEM
WHICH BASICALLY HAS THE
PRACTICAL EFFECT OF MAKING THEM
FUNCTION AS TEMPORARY POSITIONS.
SO THE CURRENT PROPOSED BUDGET
DOES NOT CONTAIN FUNDING FOR
THOSE THIRTY TWO POSITIONS.
WE'RE CURRENTLY DETERMINE HOW
THIS WILL AFFECT OUR ABILITY TO
ADDRESS THE BACKLOG AS WELL AS
OUR ONGOING WORKLOAD --
AND IT AND THE EFFECT IT'LL
ACTUALLY HAVE ON OUR STAFF --
ALSO CONCERNED ABOUT THE
NEGATIVE EFFECT TO THE WORKLOAD
A STAFF WHO WERE IN THE LIMITED
FUNNY POSITIONS BEGAN TO SEARCH
FOR AN EXIT MORE STABLE
EMPLOYMENT ELSEWHERE AND HOW
THAT WILL AFFECT.
THE CURRENT WORKLOAD.
SO WE ASKED MEMBERS OF THE
COMMITTEE TO HELP US CONTINUE
ARE POSITIVE IMPACT ON THE
BACKLOG.
AN ONGOING WORKLOAD BY
SUPPORTING FUNDING FOR THOSE
THIRTY TWO POSITIONS.
BUT WE ARE VIEWING BLACKJACK
TYPE GAMES THAT HAVE BEEN
APPROVED IN THE PAST FOR CAR
DREAMS TO DETERMINE WHETHER
THEY'RE TOO SIMILAR TO TWENTY
ONE BLACKJACK GAMES WHICH
PROHIBITED BY STATE LAW.
WE HAVE ENGAGE STAKEHOLDERS AND
DISCUSSIONS ON THIS MATTER TO
ENSURE THEY ARE PRIZED OF OUR
INTENTIONS.
ON IN DECEMBER TWO THOUSAND
SEVENTEEN ATTORNEY GENERAL THE
SERRA MET WITH KHARTOUM
REPRESENTATIVES TO HEAR THEIR
CONCERNS.
AFTER I ASSUME THE BUDGET
POSITION AS DIRECTOR.
BUT TURNING JOURNAL AND I MET
WITH BOTH CARDROOM
REPRESENTATIVES AND TROUBLE
GAMING REPRESENTATIVES IN MAY
TWO THOUSAND EIGHTEEN TO HEAR
THEIR CONCERNS.
AT THIS MEETING WE INDICATED
THAT WE WOULD HOLD OFF ON TAKING
ACTION.
ON CERTAIN ISSUES AT ITS IT
APPEAR THE LEGISLATURE MIGHT BE
CONSIDERING POSSIBLE LEGISLATION
ON CERTAIN ISSUES.
THAT MAY CLARIFY THE LAW ON
VARIOUS MATTERS.
SO WE WERE HOPEFUL THAT CERTAIN
ISSUES LIKE THE PLAYER DEALER
ROTATION ISSUE MIGHT HAVE BEEN
ADDRESSED --
AND RESOLVE THROUGH LEGISLATION.
A THEREAFTER THOUGH IN AUGUST
WHEN IT WAS CLEAR THAT THERE IS
NOT GOING TO BE --
ANY LEGISLATION I MET WITH
REPRESENTATIVES ROM CARD ROOMS
THEIR PARTY PROVIDERS IN TROUBLE --
GAMING TRIBES OUTLINED VARIOUS
ISSUES THEY PLAN TO ADDRESS
INCLUDING THE BLACK JACK ISSUE --
IN PROVIDED A A WRITTEN SUMMARY
TO FOLLOW UP ON THOSE
DISCUSSIONS.
IN DECEMBER WE INVITED THOSE
REPRESENTATIVES TO MEANS TO
PROVIDE UPDATES ON THOSE MATTERS.
WE HAVE ALSO MET WITH
INDIVIDUALS REPRESENTING LOCAL
GOVERNMENT GAME OWNERS A
LEGISLATIVE STAFF --
AS WELL AS PARTICIPATED IN
MEDIAN AND CALLS WITH
INDIVIDUALS TO HEAR THEIR
CONCERNS.
SO WE WILL CONTINUE TO LET
INDUSTRY NOW AND INDUSTRY AND
OTHERS KNOW WHERE WE ARE IN THE
PROCESS OF REVIEWING THE BLACK
JACK ISSUE.
WE'RE ALSO WORKING A REGULATIONS
TO HIM DRESS HOW CERTAIN GAMES
ARE PLAYED IN CARD ROOMS.
THE ISSUE WE ARE ADDRESSING IS
COMMONLY REFERRED TO AS ROTATION
OF THE PLAYER DEALER POSITION --
THUS FAR WE HAVE HELD FIVE
PUBLIC WORKSHOPS THROUGHOUT THE
STATE TO IN.
OBTAIN INPUT ON THE REGULATIONS --
BUT HAVE ONE ACTUALLY SCHEDULED
FOR NEXT WEEK IN RIVERSIDE
CALIFORNIA.
THE REQUESTED AND RECEIVED SOME
WRITTEN INPUT ON THE ISSUE AND
WE THEM ALL TO THE BUREAU'S
WEBSITE --
AND WE FOR FROM HUNDREDS OF
INDIVIDUALS MOSTLY FROM THOSE
WHO WORKING HARD JONES AND FOR
THIRD PARTY PROVIDERS REGARDING
THEIR CONCERNS ABOUT THE
POTENTIAL IMPACT OF THE
REGULATIONS.
WE PLAN TO HAVE DRAFT
REGULATIONS AVAILABLE FOR PUBLIC
REVIEW AND DISCUSSION IN THE
NEXT FEW MONTHS.
AND AFTER WE RECEIVE FREE PIANO
AND ANALYZE ALL THOSE COMMENTS
POSSIBLY HOLD ADDITIONAL
WORKSHOPS --
WAS WE BELIEVE THAT THOSE
REGULATIONS CAN MOVE FORWARD WE
WILL BEGIN VERY INFORMAL
RULEMAKING PROCESS.
THAT WILL INCLUDE AN ASSESSMENT
OF THE ECONOMIC IMPACT OF THOSE
REGULATIONS. TO SOME OF THESE
ISSUES HAVE BEEN ONGOING FOR
QUITE SOME TIME IN OUR COMPLEX.
I SHOULD ANY THE COMMITTEE
MEMBERS --
WHICH HAD INDIVIDUAL BRIEFINGS
DO SO.
SO WITH THAT THANK YOU AND I'M
HAPPY TO ANSWER ANY QUESTIONS.
SO IN IN TALKING ABOUT THE
BACKLOG ON APPLICATIONS AT WHAT
POINT IN TIME.
AND WHAT YEAR DID YOU NOT HAVE A
PROBLEM AND WHAT IS OCCURRED
SINCE THAT TIME.
THAT THIS BACKLOG HAS BEEN
CONSISTENT I THINK WE'RE
CONTINUALLY ASSESSING THAT
TWENTY NATIONALLY BROUGHT PEOPLE
WANTED TO SOMETIME TO HIRE TO ON
BIRD INTO TRAIN.
AND WE STARTED THEM OFF WITH THE
MOST KIND OF THE THE EASIEST
APPLICATIONS TO GO THROUGH --
SO THE BACK LIKE I THINK TOOK A
KIND OF A STEEP DIVE AND RATE
THE ARE SEEN A LITTLE BIT OF
LEVELING JUST BECAUSE NOW SOME
OF THOSE ANALYSTS ARE HANDLING
THE ONES THAT TAKE A LONG TIME
INSTEAD OF HANDLING.
LIKE FORTY FOUR AND FOR AN EASY
IN A WORK PERMIT NOW IT'S GOING
TO TAKE MONTHS PERHAPS FOR LIKE
IN A CAR ROOM --
OWNER LICENSE SO WE'RE LOOKING
AT THAT TO SEE I DON'T HAVE AN
EXACT DATE OF WEN WE THINK
WE'LL HIT WHERE IT'S JUST YOU
KNOW WE DON'T HAVE A BACKLOG.
BUT WE ARE HAVE BEEN MAKING
PROGRESS ON IT.
IT IS IT THAT YOU'VE NEVER NEVER
HAD THE STAFFING THAT YOU SHOULD
HAVE OR IS IT THAT DAY IT I KNOW
YOU YOU MENTIONED THAT WE DID
THE INCREASE ONE WE DID.
IS IT THAT WE NEED A PERMANENT
INCREASE OR IS IT THAT YOU
BELIEVE YOU'LL GET THROUGH THIS.
AND THAT WILL LEVEL OFF I THINK
WE'RE ALWAYS LOOKING FOR
ADDITIONAL RESOURCES TO HELP US
GET THROUGH JUST SO THAT WE
COULD HAVE --
YOU KNOW INSTEAD OF PUT SEVERAL
PEOPLE WANT TO GET THINGS THAT
ARE MORE COMPLICATED GET THROUGH
IT -- BUT
THOSE THOSE POSITIONS THAT WE
HAVE THERE ARE PROMINENT
POSITIONS IT JUST CAME WITH
LIMITED TERM FUNDING SO.
IT LOOKING FORWARD TO SECOND
GUESS THE STABLE FUNDING SOURCE
TO MAKE SURE THAT WE CAN KEEP
THOSE FOLKS TO CONTINUE THE THE
WORKLOAD AND THE BACKLOG.
WORKING THANK YOU ARE ON THIS ON
THIS POINT.
IT'S IT'S PUZZLING TO ME SINCE
NONE OF THIS MONEY COMES FROM
THE GENERAL FUND.
IN THE MONEY COMES FROM THE
TRIBES AND THE CARD ROOMS.
IN THIS CASE CARD ROOMS AT WHY
THEIR LIMITED TERM.
POSITIONS I MEAN THAT THIS IS A
YOU KNOW OBVIOUSLY THEY'RE
THEY'RE PAYING THESE FUNDS IN
AND IT JUST IT'S PUZZLING TO ME
WHY
IS IS IS THAT JUST THE OLD THE
OLD ADMINISTRATION AND MAYBE
THIS ADMINISTRATION IS GOING TO
LOOK AT THAT.
THE DIFFERENTLY I I I JUST DON'T
UNDERSTAND THAT WAY AND IT'S NOT
GENERAL FUND MONEY IT'S MONEY
COMING FROM THE INDUSTRY.
THE WORLD DEFINITELY WILLING TO
WORK WITH THE ADMINISTRATION ON
IT ON YOUR RIGHT THAT THE FUNDS
DO COME AGAIN CONTROL FUND NOT
THE GENERAL FUND --
SO THOSE POSITIONS IN THE PAST
JUST RECEIVE LIMITED TERM
FUNDING SO AGAIN WE'RE JUST
LOOKING TO CONTINUE THE FUNDING
TO KEEP THE THE FOLKS.
IN OUR APPLICATIONS SHEET THAT
MAN IF I MAY I HAVE THE SAME
QUESTION BECAUSE ACCORDING TO
THE REPORT THAT WE RECEIVED
TWENTY ONE POINT TWO MILLION.
ARE PROJECTED TO BE RECEIVED
CORRECT AND IT SAYS IT SUPPORTS.
OUR STATE REGULATORY AND PROBLEM
GAINING COSTS AND COSTS
ASSOCIATED WITH THE INDUSTRY SO.
I'M WONDERING DO WE HAVE TO DO
IT THROUGH --
HOW DO WE GET THE SUB THIRTY TWO
POSITIONS THAT YOU DISCUSS THAT
YOU'RE GONNA BE USING HOW DO WE
MAKE A PART OF?
THE FUNDING THAT GOES. TO TO
SUPPORT THE INDUSTRY RIGHT.
SO I GUESS THAT'S WHY THEY WERE
REQUESTING ASSISTANCE FROM THE
LEGISLATURE TO JUST ON THE
FUNDING ISSUE.
AGAIN WE DO HAVE THE THE
POSITIONS ARE NOT LIMITED TO
POSITIONS THAT JUST GO AWAY ONCE
THE FUNDING YOU KNOW.
GOES WAY BUT WE WE DO NEED TO TO
HAVE AN ON GOING FUNDING SOURCE
FOR THEM [inaudible]
CENTER BRADFORD.
THANK YOU CHAIRMAN AND THANK YOU
MISSION FROM OTHER FOR YOUR
PRESENTATION MY QUESTION RELATES --
TO BLACK JACK IN THE HOUSE BANK
MEAN A PLAYER BANK GAMES.
AND WHAT IS HAPPENED IN THE LAST
EIGHTEEN MONTHS THAT HAS CHANGED
THE WHOLE PERSPECTIVE OF A GAME
THAT HAS BEEN PLAYED. FOR TWENTY
YEARS EXPRESSION CITY A GUARDINO
WARM FROM WHERE THERE'S BEEN NO
ISSUE OF CRIME CONCERN AND WHAT
I'M JUST CURIOUS. THREE PREVIOUS
ATTORNEY GENERAL'S NEVER.
SO.
I GUESS I'VE BEEN HERE FOR
ALMOST A YEAR AND I CAN ONLY
KIND OF SPEAK TO THE HISTORY
THAT I KNOW BUT I KNOW THAT
BEFORE I ASSUME THE POSITION
BEFORE EVEN --
THE CREDIT CHECK ATTORNEY
GENERAL BECAME AG THAT THE
BUREAU STAFF HAD CONCERNS ABOUT
THE EVOLUTION OF BLACK JACK
WHICH IS TWENTY ONE THE
BLACKJACK IS PROHIBITED BY THE
PENAL CODE.
SO WHAT WE SAID GIVEN THOSE
CONCERNS THAT WE WERE GOING TO
DO A COMPREHENSIVE REVIEW OF ALL
OF THOSE GAMES --
AND LET THE INDUSTRY KNOW OUR
INTENTIONS SO WE ARE CURRENTLY
GOING THROUGH THAT REVIEW
PROCESS --
TO SEE WHICH ONES WE THINK WERE
PROHIBITED AND LET THE INDUSTRY
NOW SO.
I CAN'T SPEAK TO KIND OF THE THE
THOUGHT PROCESS OR THE PINIONS
OF THE PRIOR ATTORNEY GENERAL'S
I CAN TELL YOU THAT THIS
ATTORNEY GENERAL WANTS TO JUST
ENSURE THAT WE ARE ENFORCING THE
LAW SINCE OUR RESPONSIBILITY.
SOCIAL WE INTERPRET THE LAST
TWENTY YEARS THEY HAVEN'T BEEN
ENFORCING THE LAW.
I WANT TO SAY THAT IS SPECIAL
WE'RE STILL GOING THROUGH THE
REVIEW PROCESS OF THAT FROM SAN
NOTHING HAS CHANGED THE WAY
THESE GAMES HAVE BEEN PLAYED
I'VE.
GREW UP WITH THESE CARD ROOMS IN
THE CITY OF GARDENA AND I
WATCHED EVOLUTION I WAS ON CITY
COUNCIL WHEN THEY STARTED
CALIFORNIA FORMER BLACK JACK AND
I'M JUST CURIOUS WHAT A JOB IN
THE LAST EIGHTEEN MONTHS IS
DIFFERENT THAN.
WHAT THEY'VE BEEN DOING THE LAST
TWENTY YEARS DISCOURAGE?
CENTER ARTS A LOT OF YES THANK
YOU IN A DIFFERENT YOU'VE
DISCUSSED SO MANY ISSUES I'M
JUST GONNA TRY AND BREAK DOWN A
COUPLE.
THAT COME TO MIND YOU MENTION
YOUR DIVISIONAL STAFF THAT YOU
NEED -- BEEN
THE QUESTION IS SHOULD WE LOOK
FOR PERMANENT STAFFING --
INFLUX OF FUNDING SURE YOU COULD
GET CAUGHT UP.
THAT'S AN ISSUE FOR YOU HAVE
LEVEL.
THE OTHER THINGS SPEAKING OF
LEVELS --
THERE'S ANOTHER QUESTION
REFERENCES SECURITY --
IN THE CARD CLUBS --
HYPOTHETICALLY SOMEONE IS
WORKING THE TABLE SOMEONE'S
WORKING SOMEWHERE ELSE SOMEONE'S
WORK IN THE BACK ARE THERE
LEVELS OF SECURITY CLEARANCES --
FROM ONE TO ANOTHER ON EMPLOYEE
AND ALSO IN THE HORSE RACING
ISSUES OF PEOPLE WORKING ON THE
TRACKS ARE THERE SECURITY LEVELS
DIFFERENT THAN THOSE WORKING IN
THE CARDS.
IN THE CARD TO INDUSTRY.
RIGHTS SO WORK PERMITS ARE A
DIFFERENT KIND OF LEVEL THAN THE
KEY EMPLOYEES KEY EMPLOYEES ARE
THOSE WHO HAVE KIND DISCRETION
IN SOME DECISION MAKING
AUTHORITY IN THE CARD ROOM SO.
HAVE A KIND OF A GREATER --
LICENSEE HURDLE I GUESS TO TO
MEET SO YES WE DO CONSIDER THAT --
ALSO IN TERMS OF SECURITY THE
BUREAU DOES GO IN AND CHECK ON
SECURITY ISSUES IN THE
COURTROOMS THEY DO COMPLIANCE
INSPECTIONS IF WE GET.
A COMPLAINT ABOUT SOMETHING --
THE SECURITY IS A IN THE
SURVEILLANCE IS A GREAT RESOURCE
SO THEY UTILIZE THOSE --
TO CHECK ON THINGS WITH THE
CARTER TO INTO THE CAM AND CAL
[inaudible]
IN SOME MY COLLEAGUE --
SENATOR BRADFORD BROUGHT UP --
YEAH I'M AND I SPECIFICALLY
MENTION THE THIRTY SECOND SENATE
DISTRICT --
IS NOW A AS AS WE HEARD THE
SENATORS BEEN INVOLVED AS A CITY
COUNCILMAN. FOR TWENTY SOME ODD
YEARS AND SO ON AND IN THE
QUESTION WHAT IS CHANGED --
BUT YOUR OFFICE I'M SOON AS I
MENTIONED TO THE OTHER DIRECTOR
SHOULD BE ACTED AS A THIRD
NEUTRAL PARTY TO BRING THESE
ISSUES TOGETHER.
BRING UP TO LIGHT AND HAVE YOU
ALSO THOUGHT OF BRINGING THE
CITY MANAGER'S AND MARRIAGE
TOGETHER SO YOU CAN FIND.
THE THE AMOUNT OF INVOLVEMENT
THAT THESE CARD CLUBS GIVE TO
THE COMMUNITIES OF FROM SECURITY
AND FIRE AND AND JUST OVERALL
MAINTAINING THESE --
CITIES WITH THE INFLUX OF FOR
HAVE YOU WAY THAT [inaudible]
BECAUSE OBVIOUSLY HAS BEEN
TREMENDOUS IMPACT AND NOT JUST
THE THREE OR FOUR COMPARED
COMMUNITIES BUT ACROSS.
OF THE THIRTY SECOND DISTRICT
AND ALSO CENTER BRADFORD
DISTRICT AND THROUGHOUT THE LA
COUNTY.
YEAH SO SPECIFICALLY LIKE WITH
THE ROTATION ISSUE WE HAD TALKED
ABOUT LIKE MAYBE DOING --
PRE REGULATION WORKSHOPS JUST IN
A COUPLE PLACES BUT WE DID
SPREAD THEM OUT THROUGHOUT THE
STATE SO WE COULD GET INPUT FROM
THE LOCAL GOVERNMENTS AND THE
LOCAL COMMUNITY MEMBERS TO HEAR
HOW IT MIGHT IMPACT --
WE HAVE MET WITH INDIVIDUALS --
AND WE I CANNOT STRESS HOW HOW
MUCH WE'VE HEARD ABOUT THE
IMPACTS SO WHEN OUR YOU GO TO
OUR WORKSHOPS IT'S MOSTLY
INDIVIDUALS WHO WORK FOR THE
CARD ROOMS.
THOSE IN THE COMMUNITY WHO HAVE
BENEFITTED FROM PROGRAMS --
AND THEN LOCAL GOVERNMENT AND
THE TAX REVENUE IT BRINGS SO WE
CLEARLY UNDERSTAND THE IMPACT --
WHEN WE DO DO REGULATIONS WE
MOST LIKELY WILL HAVE TO DO A --
AM WHAT'S COMING KNOWS A SERENA
AND STANDARDIZE REGULATORY --
IN THIS IMPACT ASSESSMENT TRYING
TO REMEMBER THE ACRONYM --
BUT THAT'S RIPARIAN TO LOOK AT
ALL THE ECONOMIC IMPACTS THAT
THE THE REGULATIONS WILL DO SO
WHERE.
AND I BELIEVE THAT'S THE TERM
IMPACT ASSESSMENT YES GOTTA TAKE
A GOOD LOOK AT WHAT THIS WOULD
MEANTO THE TO THE ENTER SHE THE
COMMUNITIES AND AND THE
EMPLOYEES IN THE FAMILIES AND
EVERYONE ACROSS THE BOARD.
THAT'S WHY --
I I I LOOKTO TO MAKE SURE IT'S
NEUTRAL IT'S A THIRD NEUTRAL
PARTY YOU WEAR THAT HAT. TO
BRING PEOPLE TOGETHER AND FIND
THE COMMON GROUND THAT --
EVERYONE CAN BE HAPPY WITH AND
MAKE SOME ADJUSTMENTS ON EACH
EITHER SIDE.
AND I'M HOPING THAT THAT THAT IS
YOUR QUEST AND HOPEFULLY IT CAN
HAPPEN.
AND CENTER SO AGAIN WE ARE.
FULLY AWARE OF THE IMPACT AND
OPEN TO HEARING EVERYTHING THE
THE MAIN THING THAT WAS SO WE
NEED TO ENFORCE THE LAW AND I'VE
LET FOLKS KNOW WHO HAVE.
**** JUST TO KEEP THE STATUS QUO
AND MAYBE NOT DO REGULATIONS ARE
DRESSED MEANS AND I SAID YOU
KNOW OUR RESPONSIBILITIES TO
ENFORCE THE LAW AND THAT'S WE
HAVE TO DO.
SHOULDN'T DO AN EVACUATION
LISTEN TO HOW THE IMPACT IS
GONNA YOU KNOW AFFECT OTHERS BUT
THAT'S KIND OF OUR OUR MAIN GOAL.
LAW ENFORCEMENT MISTER CHAIR I
WRITE I WILL ALSO STATE THAT OF
THIS INFORMATIONAL CAM FOR A
SESSION.
MAY NOT BE ENOUGH TO SOLVE AND
AND GET THE COMMUNITIES TO
UNDERSTAND.
BECAUSE AS I MENTIONED THOUSANDS
UPON THOUSANDS UPON THOUSANDS OF
PEOPLE ARE AFFECTED SO I'D LIKE
TO BRING THIS UP IN THE FUTURE
AND AND TAKE A GOOD LOOK AT IT
AGAIN.
THANK YOU YEAH I JUST TO FOLLOW
UP ON THAT --
I THINK THE DIRECTOR WAS JUST
BEING DIRECT WITH US INTO
TELLING US WHAT'S GOING ON THE
THE INTENT OF THIS WAS NOT TO GO.
DID YOU KNOW TO HAVE AN
OVERSIGHT HEARING A YOUON ON
THIS SPECIFIC ISSUE BUT AS LONG
AS WERE ON THE SPECIFIC ISSUE.
I THINK IT'S FAIR --
TO TO REALLY ZERO IN ON THE SIR
BRADFORD POINT [inaudible]
IF.
I DON'T KNOW IF THERE'S ANY LEE
I'M I'M NOT AN ATTORNEY.
A LOT OF PEOPLE THINK THAT'S
GOOD -- BUT
MAYBE NOT.
BUT I GUESS TO ME IF THIS KIND
OF IT I DON'T KNOW WHAT THE
DOCTOR AND IS OR ANYTHING BUT IT
DETRIMENTAL RELIANCE OR YOU KNOW
WHAT WHATEVER THAT THE TERM IS.
WHERE YOU'VE HAD CARD ROOMS A
BEEN A BUSINESS THAT HAVE?
BEEN RELYING ON CURRENT STATE
CODE.
OUR STATE LAW IN TERMS OF THE
INVESTMENT IN THEIR BUSINESS AND
WHAT THEY'VE BEEN DOING THEY'VE
HAD CITIES --
THAT HAVE BEEN DOING A SIMILAR
THING -- I I
FROM AN ENFORCEMENT STANDPOINT
THAT -- WHEN
YOU'RE MAKING YOUR DECISION CAN
TAKE THAT INTO ACCOUNT OR IS
JUST THE COURTS?
TOLD ME THERE'S A LAWSUIT THAT'S
YOU KNOW IN THE CORD AND MORE I
WONDER IF IT'S THE A WORTHY OF
WAITING FOR THAT DECISION BEFORE.
YOU KNOW ANYTHING'S DONE I I'M
NOT SURE BUT I. E. I'M SURE
YOU'VE THOUGHT ABOUT THAT.
YEAH WE ARE WHERE THE LITIGATION
AND HAVE FUN UNTIL SOMETHING
HAPPENS OR WE CANNOT PROCEED FOR
THE WE SHOULD PROCEED ON SOME OF
THESE ISSUES THAT I THINK BEEN
AROUND FOR A WHILE WE DON'T WANT.
TO CAN TO KEEP PUSHING IT DOWN
THE ROAD AND TRY.
TO DO AS MUCH AS WE CAN TO
ADDRESS THESE ISSUES.
YEAH UNDER STRUCK WITH TWO
GERMAN STATES IS NOT A HEARING
FOR DEEP DIVE BUT I WAS JUST
CURIOUS PASSED.
TO THE ROTATION SCHEME THAT YOU
GUYS SAID.
SUGGESTED AND HOW DO YOU THINK.
A GAME OF SKILL IS ONE THAT
REQUIRES CONTINUITY IN
CONCENTRATION.
AYE AT I WOULD PLAY A SLOT
MACHINE IF I HAD TO GET UP EVERY
TEN MINUTES SO WHY WULD SOMEONE
PLAY A GAME OF SKILL.
I MEAN BILLS PROPOSE REGULATIONS
ALL BUT KILL THE GAME IN ITSELF
THE SO ON THE ROTATION ISSUE WE
ACTUALLY HAVEN'T DRAFTED
ANYTHING YET WE WE HAVE THE
WORKSHOPS JUST TO GET SOME INPUT.
UNDERSTAND THAT EVERYONE'S
EAGERLY WAITING TO SEE WHAT
WE'RE THINKING --
YOU KNOW WE'LL HAVE SOME
LANGUAGE SOME OPTIONS HOPEFULLY
SO THEY CAN ACTUALLY YOU KNOW
KIND OF DIG INTO IT BUT RIGHT
NOW IT'S REALLY JUST TO OPEN THE
ISSUE UP WE WANT TO HEAR FROM
EVERYONE.
SO IT'S IT'S BEEN GOOD IN THAT
SENSE AND WHAT WE USUALLY DO
WITH THE REGULATIONS FIRST
SUBSTANTIVE COMMENTS LEGAL
OPINIONS THINGS LIKE THAT AND
THEN OPEN UP TO THE PUBLIC WHERE
WE HEAR A LOT OF THE YOU KNOW
THE ISSUES FROM THE FROM LIKE
THE EMPLOYEES.
THANK YOU CENTER NIELSEN.
THANK YOU FOR BEING PATIENT.
LIKE TO JUST REVISIT A MOMENT
WE'VE TALKED.
ABOUT.
THE BACKLOG ISSUE NOW THAT'S
ENDEMIC IN MANY AGENCIES IN SOME
MUCH OF HUGE PROBLEM.
AT EACH YEAR AGENCIES COMMON
THEIR ONLY ANSWER IS MORE P.
WEISS.
AND THEN THE BACKLOG CONTINUES.
ARE YOUR THE MIND AT THE END AND
FORCING ACTIONS AND IN THE GAME
GAMING INDUSTRY THAT --
THEN OF PROGRESS HAS BEEN MADE
OR IS IT JUST IS A BEEN MORE LIP
SERVICE AND MORE PEOPLE EYES AND
WE JUST CONTINUE.
IT DOESN'T SEEM TO ME FROM MY
ROLE IN THE BUDGET COMMITTEE
THAT IT'S BEEN AS BIG A PROBLEM
IN THIS INDUSTRY BUT WHAT'S YOUR
TECH.
BALD SO THESE OF THE THIRD U.
POSITIONS THAT WERE TALKING
ABOUT SO IT'S NINETY IS NOT AN
INCREASE IT'S JUST KEEPING THE
FOLKS THAT WE HAVE HER DOING THE
WORK SO --
AGAIN THERE HAS BEEN AN INCREASE
THE INCREASE A DECREASE IN THE
BACKLOG BUT WE WANT TO KEEP.
MOVING FORWARD SO WE THINK THE
KEEPING THOSE THIRTY TWO IS
GOING TO HELP US GET THERE.
ARE THOSE --
TEMPORARY POSITIONS OR FULL TIME
POSITION THOSE ARE ALL --
PERMANENT FULL TIME POSITIONS
[inaudible]
THANK [inaudible]
ANYTHING ELSE.
DIRECTORS MULTI THANK YOU VERY
MUCH FOR BEING HERE TODAY I
APPRECIATE IT THANK YOU VERY
MUCH [inaudible]
YOU.
OKAY AND OUR NEXT --
UP IS --
HUGO LOPEZ DIRECTOR OF THE
CALIFORNIA STATE LOTTERY GOOD
MORNING.
MORE GERMAN DODD.
COMMITTEE MEMBERS POLYBUS
DIRECTOR THE CALIFORNIA STATE
LOTTERY.
ADDRESS OF LIFE FOR MOST THREE
AND A HALF YEARS --
WHEN I WAS APPOINTED TO I
BELIEVE IT BECAME THE TWENTY
THIRD DIRECTOR IN THE THIRTY
YEARS OF THE FLOWERS EXISTENCE --
LOTTERY REVENUES TOTALED SIX
POINT NINE SEVEN BILLION DOLLARS
LAST FISCAL YEAR AND YOU
PROVIDED PROXY ONE POINT SEVEN
BILLION DOLLARS TO PUBLIC
EDUCATION.
AS YOU HEARD --
NINETEEN EIGHTY FOUR PROPOSITION
THIRTY SEVEN MINUTE THE STATE'S
CONSTITUTION TO AUTHORIZE THE
STATUTE OF A STATEWIDE LOTTERY.
THEN ACT THIS PLOT THAT ENACTED
THE STATE LOTTERY ACT NINETEEN
EIGHTY FOUR LOTTERY ACT.
LOTTERY AT CREATED STATUTORY
FRAMEWORK BY ESTABLISHING A
CALIFORNIA STATE LOTTERY
COMMISSION.
WITH BROAD POWERS TO OVERSEE
CALIFORNIA STATE LOTTERY AND
REQUIRES THE COMMISSION TO MEET
QUARTERLY BUT IN RECENT YEARS
IT'S META MORE REGULARLY.
THE COMMISSIONERS ARE APPOINTED
BY THE GOVERNOR AND CONFIRMED BY
THE SENATE.
THE CAN EXERCISE ALL POWERS
NECESSARY TO EFFECTUATE THE
PURPOSE OF THE LOTTERY ACT.
THE COMMISSION AMONG OTHER
THINGS REVIEWS AND APPROVES
PURCHASES OVER TWO HUNDRED FIFTY
THOUSAND DOLLARS.
SALE OF LOTTERY ASSETS WATER
REGULATIONS LARGE AND A BUSINESS
PLAN AND ANNUAL BUDGETS.
THE CHANGE LOTTERY ACT AND THEN
THAT MUST BE APPROVED BY TWO
THIRDS VOTE OF EACH HOUSE THE
LEGISLATURE AND RECEIVE APPROVAL
BY THE GOVERNOR.
ANY LEGISLATIVE AMENDMENT MUST
FOR THE PURPOSE OF THE LOTTERY
ACT.
WHICH IS TO MAXIMIZE FUNDING
PUBLIC EDUCATION.
ANY AMENDMENT THAT IS NOT FOR
THE PURPOSE OF LOTTERY ACT.
MUST BE PLACED ON THE BALLOT.
AS A PUBLIC INITIATIVE FOR VOTER
APPROVAL.
LOTTERY SO MISSION IS TO PROVIDE
SETTLEMENT FUNDS BENEFIT
EDUCATION IN CALIFORNIA.
WITHOUT THE IMPOSITION OF
ADDITIONAL OR INCREASE TAXES.
THIS IS ACCOMPLISHED THE SALE OF
LOTTERY PRODUCTS LAURIE OFFERS.
TWO MAIN TYPES OF GAMES
SCRATCHERS RATES TO GAMES.
IN PARIMUTUEL DRAW GAMES.
LOTTERY TICKETS ARE SOLD OVER
TWENTY THREE THOUSAND RETAIL
LOCATIONS THROUGHOUT THE STATE.
CALIFORNIA LAW PROHIBITS THE
LOTTERY FROM OFFERING CASINO
TYPE GAMES SPORTS BETTING AND
LAURIE VIDEO GAMES.
SPECIFICALLY GOVERNMENT CODE
SECTION EIGHT EIGHT EIGHT ZERO
POINT TWO PROVIDES CHANGES TO
THE TYPES OF DELIVERY OF GAMES
THAT INCORPORATES TECHNOLOGIES --
MEDIUMS NOT READILY AVAILABLE IN.
NINETEEN EIGHTY FOUR LOTTERY
SELF FUNDED AND IS COMPRISED OF
A SINGLE GOOD TO SEE
APPROPRIATED FUND DOES NOT
RECEIVE A GENERAL FUNDS.
ANNUAL BUDGETS REFLECT THE
ESTIMATED SALES REVENUE.
BY LARRY PRODUCT LINE.
HE'S SO SHOULD A PRIZE EXPENSES
BLOGGERS ADMINISTRATIVE COST.
AN ESTIMATED CONTRIBUTION TO
PUBLIC EDUCATION.
INCLUSIVE OF AT AND CLAIM PRIZE
MONEY ALL INTEREST EARNED IN ANY
SAVINGS FROM MINISTRY OF
EXPENSES.
WHICH ARE STATUTORILY REQUIRED
TO BE PROVIDED PUBLIC EDUCATION
AT THE END OF EACH FISCAL YEAR.
ESSENTIAL WATER STARTS EVERY
FISCAL YEAR WITH A ZERO DOLLAR
FUND BALANCE.
LAURIE ACT REQUIRES QUARTERLY
TRANSFERS OF LOTTERY PROFITS TO
THE LOTTERY EDUCATION FUND.
THE STATE COMPTROLLER'S OFFICE
THAN AUDITS THE REVENUE
TRANSFERRED A TERMS HOW MUCH
MONEY EACH COUNTY OFFICE OF
EDUCATION OR SCHOOL DISTRICT IS
ALLOWED.
BASED ON THE AVERAGE DAILY
ATTENDANCE DATA THAT IS PROVIDED
BY THE DEPARTMENT OF EDUCATION.
FOR HIGHER EDUCATION
INSTITUTIONS THE DISTRIBUTIONS
BASED ON EQUIPMENT SEE A FULL
TIME STUDENT.
STATE COMPTROLLER'S OFFICE
NOTIFIES EACH COUNTY TREASURER
OF THE LOTTERY FUNDS DISTRIBUTED
THAT RESPECTIVE SCHOOL DISTRICTS.
WITHIN EACH SCHOOL DISTRICT
LOCAL EDUCATION ADMINISTRATORS
AND ELECTED SCHOOL BOARDS DECIDE.
HOW THE LOTTERY FUNDS ARE TO BE
ALLOCATED AND EXPENDED?
THE LARA'S BEEN FISHERIES
INCLUDE K. TWELVE PUBLIC SCHOOLS.
COMMUNITY COLLEGES KELLER STATE
UNIVERSITY.
UNIVERSITY OF CALIFORNIA.
HASTINGS COLLEGE OF LAW.
DEPARTMENT OF CORRECTIONS AND
REHABILITATION DIVISION OF
JUVENILE JUSTICE DEPARTMENT
EDUCATION STATE SPECIAL SCHOOLS.
BUT APARTMENT APARTMENT SERVICES
AND DEPARTMENT OF STATE
HOSPITALS.
LAST FISCAL YEAR PLOTTERS
CONTRIBUTION TO BENEFICIARIES
WAS ALLOCATED AS FOLLOWS SEVENTY
EIGHT POINT 9% WHAT THE K.
TWELVE SCHOOLS. FOURTEEN POINT
8% THE COMMUNITY COLLEGES THREE
POINT 7%.
CALIFORNIA STATE UNIVERSITY. TWO
FOUR TWO POINT 5% THE UNIVERSITY
OF CALIFORNIA AND POINT 003% FOR
SPECIALIZED EDUCATIONAL ENTITIES.
AS PREVIOUSLY MENTIONED LAST
FISCAL YEAR LONGER PROVIDER
PROXY ONE POINT SEVEN BILLION
DOLLARS TO PUBLIC EDUCATION.
THE LARGEST CONTRIBUTION TO DATE.
BUT IN THIS AMOUNT BY THE KNOWN
AVERAGE DAILY ATTENDANCE AND
FULL TIME EQUIVALENCY NUMBERS.
THIS QUEST.
TO BUT PROBABLY TWO HUNDRED
ELEVEN DOLLARS PER FULL TIME
STUDENT AT EACH OF THESE PUBLIC
EDUCATION INSTITUTIONS.
WELL IT'S TRUE.
BLOGGERS CONTRIBUTION THE PUBLIC
EDUCATION ONLY A REPRESENTS ONE
POINT 004% OF THE ENTIRE
EDUCATION BUDGET.
I THINK IT'S IMPORTANT CAN KEEP
IN MIND THAT THE COMBINED
EDUCATION BUDGETS REPRESENTS
MORE THAN 40% OF THE ENTIRE
STATE BUDGET ACTUALLY
REIMBURSEMENTS THE FEDERAL FUNDS.
THE LOTTERY ACT REQUIRED STATE
COMPTROLLER'S OFFICE TO CONDUCT
QUARTERLY AND ANNUAL POST.
A POST AUDIT OF ALL ACCOUNTS AND
TRANSACTIONS OF LOTTERY.
AND OTHER SPECIAL POSADAS AS A
CONTROLLER DEEMS NECESSARY
RESULTS ARE POSTED ON CONTROLS
WEBSITE.
THE LOTTERY ACT AS ORIGINALLY
ADOPTED REQUIRED LOTTERY SALES
TO BE DISTRIBUTED WITH 50% GOING
TO PRICES.
MINIMALLY 34% GOING TO PUBLIC
EDUCATION AND A MAXIMUM 60%FOR
ADMINISTRATIVE COSTS.
IN TWO THOUSAND TEN SIMPLY BILL
ONE FORTY TWO BY ASSEMBLYMEMBER
HIGH YEAH SHE AMENDED THE
LOTTERY ACT TO PROVIDE A LOT OF
WITH MORE FLEXIBILITY.
BY ALLOWING IT TO PAY OUT MORE
MONEY AND LOTTERY PRIZES.
THIS IS ACCOMPLISHED BY
REQUIRING THAT 87% OF LOTTERY
SALES BE ALLOCATED TO PRIZES IN
PUBLIC EDUCATION.
AND REDUCING THE ADMINISTRATIVE
COSTS FROM SIXTY PER SCENT OF
TOTAL SALES.
AB ONE FORTY TO PASS ON THE
PREMISE THAT INCREASING AMOUNT
ALLOCATED TO PRICES WOULD
INCREASE SALES.
WHICH IN TURN WOULD INCREASE THE
TOTAL NET REVENUES AVAILABLE TO
LOTTERY BENEFICIARIES.
THE STATUTE ALSO REQUIRED STATE
COMPTROLLER'S OFFICE TO ANNUALLY
DETERMINE. FOR THE FIRST FIVE
YEARS AFTER ENACTMENT WHETHER
CERTAIN POSITIVE FISCAL
CONDITIONS OCCURRED AT THE END
OF THE FIRST FIVE FISCAL YEARS.
AB ONE FORTY TWO REQUIRE THE
STATE CONTROLS TO CONVENE A
LOTTERY REVIEW GROUP CONSISTING
OF THE CONTROLLER.
SUPERINTENDENT PUBLIC
CONSTRUCTION THE CHAIRPERSON OF
THE LOTTERY COMMISSION. TO
REPORT TO THE LEGISLATURE.
ON WHETHER THE AMENDMENTS MADE
BY AB ONE FORTY TWO FOR THE
PURPOSE OF THE LOTTERY ACT IS
INTENDED.
THE STATE CONTROLLER'S MEDI TO
REPORT TO THE LEGISLATURE MARCH
TWO THOUSAND SIXTEEN WHICH
CONFIRMED AB.
ONE FORTY TWO WORKED AS INTENDED.
I BELIEVE THERE WAS A CHART
THERE'S HANDED OUT SAID
[inaudible]
OKAY -- SO
THE CHART.
A REFLECT ANY CONTRIBUTION TO
PUBLIC EDUCATION FOR THE EIGHT
YEARSPRIOR TO IMPLEMENTATION OF
AB.
ONE FORTY TOO MANY YEARS POST
IMPLEMENTATION OF AB.
ONE FORTY TWO I THINK YOU'LL
AGREE THAT THE RESULTS BEEN
POSITIVE AB.
ONE FORTY TWO POSSIBLY THE LAST
THREE YEARS THE CHART REFLECTED
PORTENTS OF STABLE LEADERSHIP
LOTTERY.
LOTTERIES ADMINISTRATIVE
EXPENSES WHICH ARE STATURE IT
pTESTED SHORT CAPPED AT 13% OF
TOTAL ANNUAL SALES.
APPEAR HIGH ANTI REALIZE IT
MOSTLY MINISTRY TO EXPENSES.
ARE FIXED COSTS.
AND THAT MAYOR LOTTERY SALES AND
A TRIPLE ATTRIBUTABLE TO REACH
OTHER COMPENSATION COST AND
GAMING RELATED COST.
SO BREAKING DOWN THE 13%
ADMINISTRATIVE EXPENSES.
ROUGHLY 7% IS A RETAILER
COMPENSATION.
THIS IS THE AMOUNT IS PAID A
LOTTERY RETAILER BUSINESSES IN
THE STATE FOR SELLING Là
PRODUCTS.
AND CASH PRIZES UNDER FIVE
HUNDRED NINETY NINE DOLLARS.
RETAILERS RECEIVE 6% OF THE
LOTTERY SALES. FOR HAVE PERCENT
FOR SELF SERVICE TERMINALS AND
CASH BONUSES OF 3% AND 1% FOR
DRUG AND TO SCRATCH AGAIN
RESPECTIVELY.
ALSO INCLUDES VARIOUS RETAILERS
CENTERS COST STRICTLY CORRELATE
WITH LOTTERY SALES.
AND WERE OVER FOUR HUNDRED
EIGHTY MILLION LAST FISCAL YEAR.
PROXY 2% IS FOR GAMING RELATED
COSTS.
THIS REPRESENTS THE COST TO
PURCHASE AND DISTRIBUTE LOTTERY
SCRATCHER TICKETS. TO PROXY
TWENTY THREE THOUSAND LOTTERY
RETAILERS.
THAT ALSO INCLUDES CONTRACT COST
FOR LOTTERY GAMING SYSTEM
PROVIDER INTERNATIONAL GAME
TECHNOLOGY --
IGT.
GAMING RELATED COSTS ALSO
DIRECTLY CORRELATE WITH LOTTERY
SALES.
AND WE'RE NEARLY A HUNDRED AND
FIFTY MILLION LAST FISCAL YEAR.
THE REMAINING 4% OFFER SALARIES
NUMBER EXPENSIVE EQUIPMENT.
THESE ARE YOUR TYPICAL OVERHEAD
EXPENSES UP ON THINKS ABOUT
LATER ADMINISTRATIVE EXPENSES.
LOTTERY TYPICALLY SPENDS JUST
OVER 3% OF ANNUAL SALES REVENUE
FOR OPERATING EXPENSES.
AS PREVIOUSLY NOTED ANY SAVINGS
FOR MINISTRY EXPENSES.
ARTS EXTRA REQUIRED TO BE
PROVIDED TO PUBLIC EDUCATION.
OVER THE LAST FIVE YEARS LETTER
HAS SENT MORE THAN TWO HUNDRED
AND FIFTY MILLION.
MORE TO PUBLIC EDUCATION BY
MAINTAINING ADMINISTRATOR
EXPENSES BELOW THE 30% CAP.
A SIGNIFICANT CHIP WHICH THE
STATEMENTS ARE THE RESULT OF A
RECENT CONTRACT EXTENSION THAT
WAS NEGOTIATED LAST FISCAL YEAR
WITH OUR GAME INVENTOR IGT.
RIGHT TO NEGOTIATE WITH IGT WE
CONSULTED WITH THECALIFORNIA
DEPARTMENT OF TECHNOLOGY
REGARDING THE TIME AND EFFORT
ASSOCIATE WITH ISSUED A REQUEST
FOR PROPOSAL OR NARESH P.. FOR
CONTRACTED AS MANY STUDENTS AND
COMPLEXITY.
WELLS CONSULTED WITH OTHER STATE
LOTTERIES AND UNDERGONE VENDOR
AND GAMING SYSTEM CONVERSIONS.
TRUST IN THE FISCAL PROGRAMMATIC
IMPACT.
BASED ON THIS INFORMATION WE
OPTED AND RENEGOTIATE THE
CONTRACT.
WITH THE OPTION ISSUE AN RFP IF
NEGOTIATES DID NOT PROGRESS IS
DESIRED.
CONSEQUENTLY MYSELF SMALL GROUP
OF KHILLARI EXECUTIVES.
SPENT AN ENORMOUS TIME WORKING
WITH URBAN IN A CONTRACT
EXTENSION.
THE END RESULT WAS A SEVEN YEAR
CONTRACT EXTENSION THAT RESULTED
IN ESTIMATED SAVINGS OF FOUR
HUNDRED TWENTY FIVE MILLION.
OR PROXY FORTY SEVEN POINT TWO
MILLION ANNUALLY.
WHEN COMPARED TO THE EXISTING
CONTRACT?
THE LOTTERY ALSO RECEIVED A NEW
GAMING SYSTEM.
WHICH WERE THE PROCESS OF
IMPLEMENTING.
AND IN LARGE AND NEW LOTTERY
EQUIPMENT FOR MOST A LOT OF
TWENTY THOUSAND RETAILERS.
INSTALLATION THE REQUIREMENT IS
ESTIMATED TO BE COMPLETED BY
JUNE THIS YEAR.
PRIMARY FACTORS THE RESULT IN
THE SAVINGS INCLUDE A 50% BASED
COMPENSATION RATE REDUCTION.
WHEN THE ORIGINAL CONTRACT WAS
NEGOTIATED THE IMPACT OF AB
FORTY ONE FORTY TWO WAS UNKNOWN?
ADDITION THE CONTEXT ENGINE
REFLECTS A FUNDAMENTAL SHIFT.
FROM LOTTERY PURCHASING LOTTERY
EQUIPMENT FOR RETAILERS THE
LOTTERY LEASING Là EQUIPMENT.
THIS ELIMINATES EXPENSIVE
REPLACEMENT MAINTENANCE AND
STORAGE COSTS WHILE INSURANCE
LOTTERY HAS ACCESS TO THE NEWS
DEPARTMENT.
BECAUSE LARA NEGOTIATE THE
CONTEXT SENTIENT TWO YEARS WITH
TWO YEARS REMAINING ON THE
EXISTING CONTRACT.
BLOTTER BEGAN REALIZING THAT
FORTY SEVEN POINT TWO MILLION IN
ANNUAL SAVINGS TWO YEARS EARLIER.
WHICH ARE PASSED ON TO LOTTERY
BENEFICIARIES OR PUBLIC
EDUCATION.
CURRENTLY THE CALIFORNIA LOTTERY
IS A SECOND WATERS LARGEST
LOTTERY IN THE COUNTRY IN TERMS
OF SALES. FOR THE PAST FEW YEARS
THE CALIFORNIA LOTTERY AT THE
ONE OF THE FASTEST GROWING
LOTTERIES IN THE NATION.
SALES GROWTH OF INFORMATICS
REVENUE INCREASES THE SCRATCHERS
HOWEVER WE ARE SEEN --
GAINES WITHDRAWAL GAMES TO THE
LARGER MEGA MILLIONS AND
POWERBALL JACKPOTS.
IT'S ALSO PORTER MEMBER THAT
MORE THAN NINETY FIVE CENTS OF
EVERY DOLLAR SPENT A LOTTERY.
GOES BACK INTO CALIFORNIA'S
ECONOMY IN THE FORM OF PRICES
RETAILER COMPENSATION SUPPLEMENT
OF FUNDED PUBLIC EDUCATION STAFF
SALARIES.
THIS YEAR LARGE PROJECTS TO
EXCEED ITS SEVEN POINT ZERO NINE
BILLION DOLLARS SALES GOAL.
HAVING SAID THAT OVER THE LAST
FEW YEARS.
PLOTTERS THREE YEAR BUSINESS
PLAN HAS BEEN MODIFIED TO SHOULD
THE LOTTERY FOCUSES ON ITS
PRIMARY MISSION.
WHICH IS THE BOTTOM LINE FOR
LOTTERY PROP MY LOTTERY SALES.
THIS IS ACCOMPLISHED FOR MAKE A
STRATEGIC CHANGES TO A LOT OF
PRODUCT LINE.
ENSURING THE LOTTERY HAS CORRECT
PRODUCT MIX TO GENERATE PROFITS.
GENERALLY LARGE CELLS CAN BE
ACCOMPLISHED FAIRLY EASY.
HOWEVER GENERALIZED PROFITS.
REQUIRES CAREFUL IT'S PROJECT
PLANNING.
THIS RELATES THE PRIZE PAYOUT
FRIDGE LOTTERY GAMES FOR EXAMPLE.
IT TAKES FOURTEEN POINT THREE
MILLION AND THIRTY DOLLARS
SCRATCH TICKETS TO GENERATE ONE
MILLION AND LOTTERY PROFITS.
WHILE IT TAKES THREE POINT THREE
MILLION IN ONE DOLLAR SCRATCH
TICKET SALES TO GENERATE ONE
MILLION LOTTERY PROFITS.
THIS IS BECAUSE THE THIRTY
DOLLAR TICKET HAS 80% PRIZE
PAYOUT WHILE THE ONE DOLLAR TO
GET HAS A 57% PRICE PATH.
DRUG GAINES HAVE A 50% PRICE
BETH.
ADDITIONAL AUTHORITIES TO SELF
ASSESS AND EXPLORE METHODS OF
IMPROVING ITS CUSTOMER
EXPERIENCE GIVEN THAT WE ARE
COMPETING FOR DISPOSAL INCOME.
CONSUMERS HAVE MANY CHOICES. ONE
SUCH EFFORT IS THE LOTTERIES
PAID THE DISTRICT OFFICE BY THE
PROGRAM.
WHICH STARTED IN NOVEMBER.
TWO THOUSAND EIGHTEEN PROVIDES
LOTTERY CHECKS FOR PRICE OF A
THOUSAND DOLLARS LESS. TO
LOTTERY WINNERS WHO COMMITTED
SACRAMENTO DISTRICT OFFICE.
CHECKS ARE PROCESSED AND ISSUED.
TYPICALLY WITHIN TEN MINUTES.
THESE ARE PRICE CHECKS ARE
LIMITED INDIVIDUALS WHO BRING IN
CLAIMS WITHOUT ERRORS OR
GOVERNMENT OFFSETS.
PRIOR TO THIS CHANGE PRICES
BETWEEN SIX HUNDRED THOUSAND
DOLLARS.
IN THE SACRAMENTO AREA WENT
THROUGH LARGE CLAIM PROCESS.
WHICH REQUIRES MILLION WINNING
TICKET AND CLAIM FORM TO LOTTERY
HEADQUARTERS WHICH ACQUIRES AT
PROCESSING THE CLAIM. FOR YOU TO
THE STATE COMPTROLLER'S OFFICE
AND ISSUE IN THE STATE WARRANT.
AT TIMES OF PEAK SALES IN.
HI JACKPOTS THIS PROCESS HAPPEN
TO OFTEN TOOK FORTY WEEKS FOR
PRICE WHICH RECEIVED A CHECK.
THE TO DATE THE LOTTERY HAS
ISSUED MORE THAN A THOUSAND
CHECKS.
AND DEPOSIT PROGRAM AND CLEAR
FEEDBACK IS BEEN OVER.
THE LOTTERY HAS RECEIVED HONORS
FROM THE WORLD LOTTERY
ASSOCIATION --
W. LA.
A GLOBAL GLOBAL LOTTERY INDUSTRY
TRADE ASSOCIATION.
CALIFORNIA IS THE FIRST IN THE
NATION TO RECEIVE THE HIGHEST
AWARD. FOR TO SPONSOR GAINING
PROGRAM THE DEBBIE LA LEVEL FOR
RESPONSIBLE GAMING AWARD IS THE
GOLD STANDARD IN THE INDUSTRY.
DEMONSTRATES LARGE COMMITMENT TO
GROWING AND RESPONSIBLE MANNER.
CALIFORNIA'S TELLS THE RECIPIENT
OF THE W. LAYS SECURITY CONTROL
STANDARDS CERTIFICATION.
THE CERTIFICATIONS LARGE
INDUSTRIES ONLY INTERNATIONALLY
RECOGNIZED SECURITY STANDARDS.
LARA HAS FOUR EIGHT HUNDRED
FORTY FIVE PERMANENT POSITIONS
FOR NINETY FIVE ARC HEADQUARTERS
BUILDING.
IN SACRAMENTO THREE AN FIFTY
REPORT TO OUR NINE DISTRICT
OFFICES OR TWO DISTRIBUTION
CENTERS.
LARA'S ALSO LEADER IN MEETING
STATEMENT THE BUILDING AND
ENERGY EFFICIENCY STANDARDS.
THE DATE FOR ALL NEW LIVE
FACILITIES HAVE BEEN DEVELOPED
AS LEAD CERTIFIED AND ZERO NET
ENERGY.
GENERATE MUCH ENERGY IS THE
CONSUMER A YEAR.
LARA'S FLEET INCLUDES ZERO
EMISSION VEHICLES.
AND CHARGING STATIONS ARE
AVAILABLE AT FIVE WATER
BUILDINGS.
WITH MORE TO COME.
THANK INCLUDES MY REMARKS YOU
MIGHT HAVE ANSWER ANY QUESTIONS
YOU MAY HAVE.
THANK YOU --
CENTER OUR AND WHAT THE AS OF
TWENTY SO MUCH FOR THE
PRESENTATION IT'S VERY HELPFUL
TO SEE --
THE INCREASE IN AND EDUCATION
FUNDING SENSE OF THE PAST ONE OF
THE CHALLENGES THAT ON THE
LOTTERY CONTINUES TO HAVE IN THE
PUBLIC RELATIONS ARENA --
IT'S ALMOST LIKE SOME OF THE
CHALLENGES THAT HIGH SPEED RAIL
HAD WHICH IS THAT --
IT MAYBE THERE WAS A CERTAIN
DEGREE OF OVER PROMISING --
YOU KNOW WHEN I GO OUT THERE AND
TALK ABOUT THE EDUCATION --
IN FRANCE ISSUES ASSOCIATED WITH
EDUCATION EVER NOT.
INEVITABLY THERE'S SOMEONE IN
THE AUDIENCE IS WHAT THAT THE
WATER IS GOING TO TAKE CARE OF
THAT.
AND NOW IT'S GREAT YOU KNOW YOU
YOU MENTIONED THAT IT'S
BASICALLY JUST 1% OF OUR OF OUR
EDUCATION BUDGET --
WHY IS IT THAT THERE IS SUCH YOU
KNOW WHAT THE?
CAN YOU CAN USE THE KEY TALK A
BIT ABOUT THE PASSAGE OF THE IN
THE IMPLEMENTATION THE LOTTERY
BACK IN THE DAY.
AND THE PROMISES THAT WERE MADE
ABOUT EDUCATION FUNDING --
YOU KNOW ONE THING I CONCERT
SAID PEOPLE'S IT HOW COULD YOU
POSSIBLY RUN A FUNCTION WATERY --
THAT WOULD ACTUALLY IN THE IN
THE THERE ACTUALLY FULLY FIND
THE EDUCATIONAL SYSTEM BUT I
THINK IN PEOPLE'S MINDS --
THEY THEY DON'T THEY DON'T KIND.
THE SCOPE AND SIZE OF THESE
SYSTEMS AT PLAY HERE AND YOU
KNOW THAT STORY WAS I THINK TOLD
VERY.
LESLIE TO THE PUBLIC WHEN THEY
WERE BEING SOLD ON THE IDEA OF
OPENING THIS IN THE FIRST PLACE.
I KNOW I I I ACTUALLY WORKED AT
DATE.
REACH AYE STORK ALBERTSON'S WHEN
THE WATER IS PASS ARE I WAS THE
CLERK I REMEMBER THE WHOLE THING
WITH THE EXCITEMENT WITH THE
LOTTERY --
AND YOU'RE ACTUALLY CORRECT --
IF THEY I I STILL HEAR THAT THAT
SAME THING NOW AS FAR AS YOU
KNOW WHY IS THE LOTTERY NOT
FUNDING EDUCATION AND THEIR
STATE.
A PERCEPTION THAT THE LATTER WAS
WAS GOING TO FIND JUST A LOT OF
EDUCATION'S BUDGET --
AND THAT SEXY YOU KNOW WHEN ONE
OF THE REASONS THAT WERE TRYING --
TO PUT IN THERE IS THAT A STEP
THAT I CITED THE TWO HUNDRED
ELEVEN DOLLARS --
BECAUSE WHEN WE TALKED TO
INDIVIDUALS WE CAN TELL THEM ONE
POINT SEVEN BILLION DOLLARS GOES
TO PUBLIC EDUCATION --
BUT I THINK WHAT PEOPLE WANT TO
HEAR MUCH COMES TO TO MY CLASS --
SO HOPEFULLY THE TO AN ELEVEN
DOLLARS MAKES IT MORE TANGIBLE
FRUGAL TO UNDERSTAND.
THAT A LOT OF YOU SEARCHLIGHT TO
PROVIDE SUPPLEMENTAL FUNDS --
BUT IT'S NOT THE BE ALL FIX ALL
THAT --
PERHAPS PEOPLE MAY. HUNDRED
ELEVEN TO EACH CLASSROOM EVERY
YEAR JUNE.
ELEVEN THE NETS THE EIGHTH AND
IT IT'S NOT PROVIDED THAT'S JUST
THE AVERAGE.
THAT IS TAKING THE TOTAL DOLLAR
AMOUNT THE ONE POINT SEVEN
DIVIDED BY THE AVERAGE DAILY
ATTENDANCE RIGHT SO AS IS
INDICATED MY TESTIFIED HOW THE
MONEY IS SPENT IS IS IS IS ABOUT
FIFTY PER CUSTOMER PER STUDENT.
THAT'S FOR STUDENTS PERSON.
AGAIN THAT DOESN'T GO FOR
INDIVIDUAL STUDENT THAT'S JUST I
NEVER UNDERSTAND RIGHT OKAY YEAH
YEAH.
YEAH -- OKAY
I MEAN I OBVIOUSLY YOU WEREN'T
RIGHT IN THE THAT SHOW AT THE
TIME -- BUT
I DO THINK IN ONE OF THE
CHALLENGES THAT WE HAVE IN
GOVERNMENT SOMETIMES IS THAT
WHEN.
PROGRAMS ARE ARE OVERSOLD.
CAM PRODUCES DISAPPOINTMENT EVEN
IF THERE'S GOOD RESULTS BE
PRODUCE AND I THINK THAT AND I
THINK THAT WAS ONE OF THE
CHALLENGES THAT WE HAD WITH HIGH
SPEED RAIL TO BE HONEST I MEAN
YOU KNOW.
HOW THAT THAT CAN THE SENATE ON
A ON A DANGEROUS COURSE MOVING?
FOR IT YOU'RE ABSOLUTELY CORRECT
AND AND YOU KNOW WE WE TRY TO
FOCUS AND WE WORK --
WITH OUR EDUCATION PARTNERS TO
TO FOCUS ON THE GOOD THE GOOD
STORIES TO ME TO THIS DAY I
STILL GET A QUESTION ABOUT THE
LOTTERY WHEN I'M TALKING ABOUT
SCHOOL FINANCE AND IT'S THE I
DON'T HOW MANY YEARS LATER I
MEAN TWENTY YEARS LATER --
THIRTY THIRTY FIVE OKAY AREA
THERE'S ALWAYS SOMEONE THERE IS
THAT WHAT THEY TOLD US IT WAS
GOING TO THE US SOLVE OUR
EDUCATION FINANCE PROBLEMS AND
IT'S PROVIDING 1% WHICH IS
IMPORTANT BUT ONLY. 1%.
ANY OTHER QUESTIONS.
OKAY MISS LOPEZ THANK YOU VERY
MUCH FOR YOUR TESTIMONY PER
SHIFT.
OKAY --
WE'RE GONNA HAVE NOW REPEAT
OCCUR AT EXECUTIVE DIRECTOR OF
THE CALIFORNIA HORSE RACING
BOARD [inaudible]
DID YOU.
GOOD MORNING MEMBERS THANK YOU
FOR THE OPPORTUNITY.
TO DRESS YOU THIS MORNING --
AS ONCE A SINCE ITS OPENING DAY
OF GEO I WAS HOPING YOU MIGHT
WEAR A NICE HAT --
FOR THIS PRESENTATION BUT TO
ENOUGH AREA IN LIKE A CAP GIVE
AWAY TO HAVE LIKE A LIKE A NICE
A HORSE RACING HAT FOR OPENING
DAY BROUGHT A BOBBLE HEAD DOLL
MAYBE.
A FASCINATING I'LL REMEMBER THAT
NEXT YEAR THANK --
AS WAS STATED BEFORE THE HORSE
RACING BOARD WAS AUTHORIZED BY
STATEWIDE REFERENDUM IN --
NINETEEN THIRTY THREE SO LAST
YEAR WE TURNED --
EIGHTY THE CREATION OF THE BOARD
BY THE LEGISLATURE THE THE THEN
RATIFIED BY THE PEOPLE'S SAID
THE BOARD SHALL HAVE ALL POWERS
NECESSARY AND PROPER. FOR
ADOPTING RULES AND REGULATIONS
TO PROTECT THE PUBLIC. FOR
ADMINISTRATION AND ENFORCEMENT
OF ALL LOU --
LAWS RULES AND RAGS.
ADJUDICATION OF CONTROVERSIES
LICENSING OF EACH RACING
ASSOCIATION AND ALL PERSONS
OTHER THAN THE PUBLIC AT LARGE.
WHO PARTICIPATED A HORSE RACING
EETING WITH PARIMUTUEL WAGERING?
AND THE ALLOCATION OF RACING
DATES TO QUALIFIED ASSOCIATIONS
IN ACCORDANCE WITH THE LAW.
OF THE SEA HRB IS SPECIAL FUNDED
WE HAVE A STAFF OF ABOUT EIGHTY
FIVE INDIVIDUALS.
THAT INCLUDES TWENTY TWO
STEWARDS AND SAFETY STERN WORDS
TWELVE OFFICIAL VETERINARIANS
AND THIRTEEN SWORN POLICE
OFFICERS --
THE STEWARDS ARE THE BACKBONE OF
THE BOARD'S MISSION TO ENSURE
THE INTEGRITY VIABILITY AND
SAFETY OF THE HORSE RACING
INDUSTRY.
THROUGH MOST OF THE CALENDAR
YEAR THERE ARE FOUR LICENSED
RACING MEETS AN OPERATION --
TO IN THE SOUTH AND TWO IN THE
NORTH FOR INSTANCE THIS WEEK WE
WILL HAVE.
DAYTIME RACING AT SANTA ANITA.
IN ARCADIA GOLDEN GATE FIELDS ON
THE NIGHT TIME RACING WILL BE AT
A LOSS ALAMEDA WAS DOWN SOUTH
AND AT CAL EXPO UP HERE IN THE
NORTH.
DURING THE SUMMER MIXED BREED
RACING IS CONDUCTED AT THE FAIRS
AT SEVEN FAIRGROUNDS SHINS UP-HERE IN THE NORTH IN
THOROUGHBRED RACING IN THE SOUTH
SHIPS TO DEL MAR.
THERE ARE CURRENTLY ABOUT TWENTY
SIX THOUSAND LICENSEES
AUTHORIZED PARTICIPATE IN RACING
IN CALIFORNIA.
AND SUBJECT TO REGULATION BY THE
BOARD.
AS AUTHORIZED BY LAW RACING IS
SELF ADJUDICATING.
A PANEL OF THREE BOARD
CONTRACTED STEWARDS ARE JUDGES
ARE ASSIGNED TO EACH RACE TRACK.
AND PER LAW THESE JUDGES ARE
RESPONSIBLE FOR THE RACE MEET IN
EVERY PARTICULAR.
THEY SERVE AS REFEREES DURING
THE RACING PROGRAM AND HAVE THE
POWER TO CHANGE THE ORDER OF
FINISH.
IF A FILE HAS OCCURRED COSTING
HORSE A BETTER PLACING.
BUT THE STORES ALSO HAVE THE
AUTHORITY TO FINE AND SUSPEND
THEY CONDUCT HEARINGS AND A RULE
VIOLATIONS WHICH MAY INCLUDE
MEDICATION VIOLATIONS.
THE C. HRB HAS THE MOST ROBUST
DRUG TESTING PROTOCOLS IN THE
COUNTRY.
WHILE THERE ARE HUNDREDS OF
DRUGS APPROVED BY THE FDA FOR
USE IN HORSES.
ONLY A FEW ANTI INFLAMMATORY OR
THERAPEUTIC MEDICINES ARE
PERMITTED IN RACING.
AND THE PERMITTED THRESHOLDS FOR
THOSE IS LESS THAN A GRAIN OF
SALT PER MILLILITER OF BLOOD.
AND IF THEY AREN'T STRICTLY
PRINT PERMITTED THEY ARE
STRICTLY PROHIBITED.
THE BOARD UTILIZES THE MEDI LAB
AT UC DAVIS FOR ITS TESTING THE
LAB IS NOT ONLY ACCREDITED IN
THE U. S..
BUT ONE OF FIVE ACCREDITED
INTERNATIONALLY.
LAST FISCAL YEAR THE MEDI LAB
ANALYZE THOUSAND A HUNDRED AND
FIFTY ONE SAMPLES. FOR THE WORST
RACING BOARD BY WAY OF
COMPARISON YOU SADA ON THE U. S.
ANTI DOPING AGENCY.
TESTED ABOUT TWELVE THOUSAND
SAMPLES DURING THAT SAME TIME
FRAME.
THE MAJORITY OF OUR TESTS WERE
CONDUCTED ON BLOOD AND URINE
FOLLOWING THE RACE --
BUT WE ALSOCONDUCT PRE RACE
TESTING.
OUT OF COMPETITION TESTING SOME
OF THAT TESTING MIGHT INCLUDE
HAIR FOLLICLE TESTING.
WE HAVE FOUR CATEGORIES OF
MEDICATION VIOLATIONS AND RACING.
THREE OF THEM ARE WHAT WE
CONSIDER TO BE ARE FELONIES
THOSE ARE MEDICATIONS THAT MAY
ENHANCE PERFORMANCE. FOR THE
FOURTH ARE USUALLY ACCIDENTAL
OVERAGES OF PERMITTED
MEDICATIONS LIKE ANTI
INFLAMMATORIES.
SO OF THE FIFTY SIX THOUSAND
SAMPLES TESTED LAST YEAR WE HAD
SIX OF THOSE SERIOUS VIOLATIONS.
MY PERSONAL VIEW THAT HORSE
RACING AS ARGUABLY THE CLEANEST.
OF ALL THE MAJOR SPORTS.
BUT STILL LIVES WITH THE STIGMAS
AND STEREOTYPES THAT THERE'S
MANIPULATION GOING ON BECAUSE
THERE'S BETTING.
THE BOARD IS ALSO RESPONSIBLE
FOR MAINTAINING THE INTEGRITY OF
THE WAGERING IN PARA MUTUAL WAY
DURING THE RACE TRACK HAS NO
INTEREST IN THE OUTCOME OF THE
WAGER.
IT ACTS AS A KIND OF ESCROW
COMPANY ACCEPTING THE WAITERS
AND PAYING THE WINNERS.
DURING THE LAST FISCAL YEAR WAY
DURING BY CALIFORNIANS --
ON CALIFORNIA RACES OR BY PEOPLE
OUT OF STATE ON CALIFORNIA RACES
TOTAL THREE POINT ONE BILLION
DOLLARS.
THE TAKE OUT WITH HELP FROM
THESE WAGERS IS DISTRIBUTED
ACCORDING TO STATUTE AND
ACCORDING TO THE TYPE OF WAGER.
WHERE WAS PLACED AND THE TIME OF
DAY IT WAS PLACED WE ARE AT THE
RECONCILIATION OF THESE
DISTRIBUTIONS?
THIS FEATURE BE ALSO LICENSES
SEVEN ONLINE PROVIDERS.
THAT'S ACCOUNT WAGERING.
BETTING ON HORSE RACING IS THE
ONLY LEGAL FORM OF ONLINE
WAGERING --
IN CALIFORNIA.
THIS TYPE OF WAGERING NOW
COMPRISES ABOUT 2121% OF THE
TOTAL HANDLE.
I KNOW LIKE TO ADDRESS ARE
RACING SAFETY PROGRAM.
OBVIOUSLY WE HAVE A RACE HORSE
IN THE MIDDLE OF EVERYTHING THAT
WE DO.
THERE'S GREAT SENSITIVITY TO THE
CARE AND WELFARE OF THE HORSE.
THE HORSE RACING BOARD THROUGH
THE LEADERSHIP OF CHAIRMAN
WINNER AND THAT AND AND THE
COMMISSIONERS AND OUR EQUINE
MEDICAL DIRECTOR WHO BY THE WAY
IS AN EMPLOYEE PER STATUTE AS AN
EMPLOYEE OF UC DAVIS NOT OF THE
HORSE RACING BOARD.
WE DEVELOP A NEW RACING --
PROGRAM TO IDENTIFY WHAT WE
DETERMINE OUR HORSES AT RISK.
THESE INCLUDE HORSES THAT HAVE
NOT STARTED IN A RACE FOUR
HUNDRED TWENTY DAYS OR MORE.
WHO ARE FOUR YEARS OLD OR OLDER
AND ARE ON RACED MUST BE A
REASON WHY THEY HAVEN'T RACE TO
THAT POINT?
WHO HAVE EVER BEEN PLACE ON THE
VETS LIST THE VETS LIST IS --
ONE OF OUR RULES THAT ALLOWS OUR
VETERINARIANS --
FOR ANY REASON BUT USUALLY FOR
ON SOUND A SOURCE SICKNESS --
TO BE PLACED ON A BEST LIST
WHICH ME ON CANNOT COMPETE IN A
RACE UNTIL THEY HAVE --
PERFORMED IN A WORK OUT AND HAD
A POST RACE TESTS DONE --
AND ARE APPROVED BY THE
VETERINARIAN TO RETURN TO RACING --
THAT'S A LOT OF HORSES ACTUALLY
THAT ARE IDENTIFIED EVERY DAY --
AND THOSE HORSES ARE SUBMITTED
TO ENHANCED EXAMINATIONS
ORDINARILY A WORSE THIS GONNA
RUN IN A RACE.
IS SEEN BY OUR OFFICIAL
VETERINARIAN ON THE MORNING OF
THE RACE EVERY HORSE THAT RACES
IS EXAMINED.
BUT THESE HORSES ARE EXAMINED
MULTIPLE TIMES BEFORE THEY'RE
ALLOWED. TO ENTER TO RUN.
THERE'S ALSO BEEN SOME BENEFITS
TO THIS PROGRAM WHICH FRANKLY WE
DIDN'T ANTICIPATE.
THIS SCRUTINY HAS CAUSED THE
PEOPLE THAT CARE FOR THESE
HORSES TO BE AMERICAN MORE AWARE
OF THE FACT THAT THEY MAY HAVE
AN ISSUE --
SO THAT IS HELPFUL ALSO THE
VETERINARIANS THAT SEE THESE
SOURCES WHETHER IT'S IN THE BARN.
OWL OR WHEN THEY'RE TAKING OVER
TO THE RECEIVING BARN BEFORE THE
RACE WHEN THEY GO INTO THE
SADDLING PADDOCK BEFORE THE RACE
AND THEN WHEN THEY'RE OUT ON THE
RACETRACK.
THE VETERINARIANS THAT ARE THERE
THE OFFICIAL OR TRACK
VETERINARIANS REALIZE THAT THESE
HORSES --
DESERVE A SECOND LOOK.
AS A RESULT WE'VE SEEN
SIGNIFICANT.
IMPROVEMENTS --
IN.
THE SAFETY OF HORSES WE HAVE A A
RULE THAT SAYS THAT ANY WORSE
THAT DIES WITHIN AN ENCLOSURE OF
A C. H. R. B. FACILITY.
MUST BE NECROPSY BY UC DAVIS.
THAT PROGRAM WAS ESTABLISHED IN --
NINETEEN NINETY LAST YEAR WE HAD
THE FEWEST NUMBER OF NEW CROP
SEES IN TWENTY NINE YEARS.
SO.
MOVING IN THE RIGHT DIRECTION
BUT WE ARE ALSO SENSITIVE TO THE
FACT THAT A SINGLE HORSE LOST.
IS TOO MANY.
BUT I WANT TO ASSURE THIS
COMMITTEE THAT THIS IS THE
HIGHEST PRIORITY. FOR THE HORSE
RACING BOARD NOT TOP NOT TROLL --
BUT WE'RE DOING EVERYTHING THAT
WE CAN.
WE HAVE OTHER SAFETY ISSUES THAT
I'D LIKE TO MENTION TO YOU WE
ARE THE ONLY STATE IN THE NATION.
THAT RESTRICTS THE USE OF THE
RIDING CROP DURING A RACE --
IF IT THE JOCKEY A USE OF THE
RIDING CROP MORE THAN THREE
TIMES IN SUCCESSION WITHOUT
GIVING A WORSE A CHANCE TO
RESPOND.
BATS A VIOLATION OF OUR RULES IF
THE JOCKEY --
VIOLATES THAT RULE MORE THAN
ONCE THEN THE PENALTY IS
INCREASED.
AND THAT CAN RESULT IN ALWAYS
RESULTS IN FINES AND CAN RESULT
IN SUSPENSIONS AS WELL.
WHAT HAS HAPPENED IS THAT WITH
THE IMPLEMENTATION OF THIS RULE
ABOUT FOUR YEARS AGO?
THE WRITING HAS GOTTEN MORE
PROFESSIONAL IN CALIFORNIA.
THE USE OF THE RIDING CROP HAD
BECOME KIND OF A CRUNCH FOR
JOCKEYS.
NOW THERE ARE USING THE HANDS
MORE OFTEN THEY'RE THEY'RE MORE
PROFESSIONAL RIDERS WE HAVE THE
BEST IN THE COUNTRY TO BEGIN
WITH HERE GENERALLY IN
CALIFORNIA.
AND THIS IS MADE THEM EVEN
BETTER -- WE
REPORT ALMOST.
IT'S VERY RARE THAT WE SEE AN
INJURY TO A HORSE BECAUSE OF THE
USE OF THE CROP THE CROP ITSELF
HAS BEEN CHANGED IT SHORTER.
I'D USED TO BE USED TO HAVE A
LIKE A VINYL AND ON IT --
AND NOW THAT THE END ON IT IS --
MADE OF MICROPHONE OR WHATEVER
THEY CALL THAT --
SO IT'S VERY SOFT VERY FORGIVING
AND SO WE THINK WE'RE MOVING IN
THE RIGHT DIRECTION THERE AND
ALSO I'M PROUD TO SAY THAT THIS
IS THE ONLY STATE THAT HAS A
SAFETY STORED PROGRAM.
THIS THIS PROGRAM WAS
ESTABLISHED BY MY PREDECESSOR
KIRK BREED ABOUT EIGHT YEARS AGO.
AND WHEREAS THE STORES THAT I
DESCRIBED BEFORE ARE THE JUDGES
AND THEY BASICALLY ARE
MONITORING EVERYTHING THAT'S
GOING ON THESE TWO WORDS WORK ON
THEIR BEHALF TO BE IN THE STABLE
AREA ON THE RACE TRACK AT ALL
TIMES MONITORING SAFETY.
FROM SIMPLE THINGS LIKE MAKING
SURE THAT ANYBODY ON HORSEBACK
AS A SAFETY VEST THE RIGHT TYPE
OF HELMET MAKING SURE THE RIDING
CROPS --
COMPLY WITH THE SPECIFICATIONS
BUT MORE IMPORTANTLY THERE IN
THE STABLE AREA THEY HAVE BECOME --
THE EYES AND EARS EXTENDED EYES
AND EARS FOR OUR INVESTIGATORS
AND ANYTHING THAT THEY SEE THAT
THEY REALIZE THE POTENTIAL
VIOLATION --
THEY SECURE THE LOCATION AND
THEY CALL ONE OF OUR
INVESTIGATORS.
WE'RE ALSO VERY.
LUCKY TO HAVE.
COMMISSIONERS APPOINTED BY THE
GOVERNOR.
WHO HAVE A CARE FOR THE RACE
HORSE?
WHO ARE PASSIONATE ABOUT THAT
CARE WHO ARE PASSIONATE ABOUT
DOING THE RIGHT THING FOR THE
PUBLIC IN THE RIGHT THING FOR
THE INDUSTRY --
AND YOU KNOW IT OVER THE YEARS
WE HAVE BEEN LOOKED AT MORE BY
SOME AS A A LEGAL OFFICE --
HELL WARD OTHERS MAY BE AS SOME
KIND OF MARKETING PARTNER.
A REMAND I REMIND EVERYBODY
WE'RE NOT THAT --
WE'RE REGULATORS WHO ENFORCE THE
LAW WHEN FORCE THE RULES AND
REGULATIONS OF THE STATE.
AND WE DO HAVE THIS SPECTACULAR
CREATURE THIS BEAUTIFUL REYES
SOURCE -- AS
THE COMMON DENOMINATOR OF
EVERYTHING THAT WE DO AND SO
WHAT IT TO KEEP SUCH PASSIONATE
ABOUT IT.
THANK YOU IT BE HAPPY TO ANSWER
ANY QUESTIONS YOU MIGHT HAVE.
THE CENTER OUR PERHAPS --
IT'S MORE TIRED THE HELL NO NO
THIS IS A MORE SERIOUS.
QUESTION YOU KNOW --
I APPRECIATE ALL THAT YOU'RE
TALKING ABOUT TERM SAFETY I WILL
SAY IN TODAY'S MY LA TIMES THIS
MORNING OPEN IT UP.
AND THERE'S AN ARTICLE ABOUT HOW --
SINCE DECEMBER TWENTY SIXTH DAY --
SANITY TO RACE TRACK JUST
SUFFERED ITS NINETEENTH HORSE
DESK NINETEEN WORK RESOURCES
HAVE DIED AT SANTA ANITA.
SINCE DECEMBER TWENTY SIXTH.
ALONE SO WE'RE LOSING A HORSE.
A BEAUTIFUL RESOURCE EVERY TWO
OR THREE DAYS WITHOUT A TYPO OR
WHAT THE HELL'S GOING ON IT'S IN
INDIA.
WELL THAT'S THAT'S THE QUESTION
THAT WE'VE BEEN.
ASKING AND TRYING TO ANSWER OVER
THE LAST MANY WEEKS --
THAT THERE'S NO QUESTION THAT
WHEN THERE'S HEAVY RAINS IN THE
TRACK IS MANIPULATED.
IT IS WHAT THEY CALL SEALED IN
ANTICIPATION OF A RACE --
I'M SORRY OF A RAINSTORM.
A MINUTE AFTER THE RAIN STORM IT
IS OPEN BACK UP AGAIN.
AND WHEN WE HAVE THE DROUGHT
YEARS.
WE HAD A WONDERFUL SAFETY
NUMBERS.
BUT NOW WITH THESE CHANGING
RACETRACKS SOMETIMES THREE OR
FOUR DIFFERENT TYPES OF TRACKS
IN THE COURSE OF A WEEK.
DEPENDING ON WHAT THE WEATHER'S
DOING WHAT THE MAINTENANCE IS --
IT PUTS SUSCEPTIBLE HORSES AT
RISK.
IT IS AN INEXACT SCIENCE.
A SANTA NEED AS WE SPEAK HAS THE
THE PERSON IS --
BELIEVE TO BE THE FOREMOST
AUTHORITY ON THESE SERVICES AT
SANITY'S OF THE UNIVERSITY OF
KENTUCKY'S AT SANTA ANITA.
UM NOW AS A RESULT OF THE
BOARD'S INTERVENTION OVER THE
WEEKEND LET ME STIPULATE THAT.
THIS IS PARTICULARLY FRUSTRATING
FOR THE BOARD.
BECAUSE WE HAVE SPECIFIC RULES
AND REGULATIONS THOSE ARE EASY
TO ENFORCE.
THE RESPONSIBILITY FOR THE
MAINTENANCE OF THE RACE TRACK
LIES WITH THE ASSOCIATION.
HOW THEY DO COME BEFORE THE
BOARD MULTIPLE TIMES PER YEAR
AND THEY HAVE TO PRESENT THEIR
MAINTENANCE PROGRAM AND THEY
HAVE TO SHOW AS INDIVIDUALS OR
QUALIFIED TO TAKE CARE OF THE
RACETRACK AND SO FORTH?
BUT THE ONLY ACTION THAT THE
BOARD CAN REALLY TAKE IN A
SITUATION LIKE THIS IS TO SHUT
IT DOWN.
AND I GOTTA TELL YA THERE'S BEEN
TALK ABOUT THAT.
ON THE OTHER HAND YOU WE LOOK AT
THE WHOLE PICTURE.
THIS THIS NUMBER THIS.
NINETEEN IS MORE THAN DOUBLE.
THE NUMBER LAST YEAR AT THE SAME
TIME.
I WILL SAY TO YOU TO KEEP IN
MIND THAT.
LAST YEAR THERE WERE THIRTY FIVE
THOUSAND STARTERS IN RACES.
WORK OUTS EACH DAY THERE WILL BE
MORE THAN A HUNDRED AND FIFTY
HORSES THAT ARE IN A TIME.
WORKOUT OTHER WORDS A FULL OUT
EXERCISE EACH MORNING AS WELL AS
THE HUNDRED THAT WILL RACE IN
THE AFTERNOON.
THIS IS THE MOST DIFFICULT
QUESTION. FOR THE BOARD TO
ANSWER [inaudible]
BECAUSE WHEN YOU.
STOP RACING WHEN YOU SHUT IT
DOWN --
YOU'RE ALSO TAKING PEOPLE'S
LIVELIHOODS AWAY FROM THEM AND
SO FORTH.
SO I WISH I HAD A GOOD ANSWER
FOR YOU SENATOR I DON'T.
WE'RE DOING EVERYTHING WE CAN WE
ADD ON SUNDAY MORNING WE WERE ON
THE PHONE --
WITH SANITY TO MANAGEMENT WE
CONVINCE THEM TO SHUT DOWN THE
RACETRACK ON MONDAY AND TUESDAY.
AND WHICH THEY'VE DONE.
AND THEY THE UNFORTUNATELY THAT
AND SHUT THE TRACK DOWN TILL
NINE O'CLOCK ON MONDAY MORNING
AND WILD HORSE WAS LOST --
SO THEY GOT THE TRACK CLOSE TO
HAVE TAKING IT ALL APART THEY
REALLY BROUGHT OUT MISTER MAKE
PETERSON DR MAKE PETERSON
[inaudible]
AND WILL EVALUATE IT GOING
FORWARD BUT AGAIN.
THE ONLY ACTION REALLY THAT THE
BOARD CAN TAKE OTHER THEN URGING
CAJOLING AND PUSHING --
IS TO SHUT THE INDUSTRY DOWN TO
SUSPEND.
THE THE LICENSE OF THE RACING
ASSOCIATION.
THROUGH TYPICALLY AT JUST SO I
UNERSTAND A HORSE.
WITH THE WET CONDITIONS A HORSE
LOSES ITS FOOTING THE BRICKELL
BREAK A LEG AND HAVE TO BE PUT
DOWN AS THAT IS ACTIVELY WHAT'S
HAPPENING HERE.
YOU ESSENTIALLY YEAH IT'S IT'S
WHEN YOU HAVE A CONSISTENT
RACING SERVICE THAT'S
EVERYBODY'S GOAL --
SAW WELL.
IF YOU IF THE IF.
IF IT WAS JUST UP TO THE TRACK
MAINTENANCE CREW --
YOU KNOW THEY'VE THEY'VE THEY
WATER THE TRACK ALMOST.
TWENTY FOUR SEVEN THEY THEY HAVE
THESE THE UP MONSTROUS TRACTORS%
AND AND HEROES THAT THAT
MANICURED ALL DAY LONG.
SO IN PERFECT CONDITIONS YOU
HAVE A VERY GOOD RACE TRACK VERY
CONSISTORIES TRACKS OFF I'M
TRAINING WORSE OVER THAT SERVICE
I CAN EXPECT THAT THREE DAYS
FROM NOW IF I TAKE HIM OUT THERE
AGAIN.
HE WILL TRAIN OR A VERY SIMILAR
SERVICE HOWEVER IF I HAVE BEEN
TRAINING OVER THAT SERVICE AND
NOW I RACE THE HORSE OVER A
SERVICE THAT'S BEEN SEALED.
IT'S HARDER.
IT'S MUCH MORE FIRM THAN WHAT
THE THE HORSE HAD BEEN TRAINING
ON CELL THAT'S TODAY TODAY'S
RAINING AND WE RACE ON THAT
SERVICE.
TOMORROW THE SUN COMES BACK OUT
WHAT WE STILL HAVE A MUDDY.
SURFACE THAT'S COMPLETELY
DIFFERENT THAN WHAT THE HORSES
MEANT TRAINING ON IT'S A
COMBINATION OF THAT
BURIED SERVICE IT'S DIFFERENT.
AND OF COURSE THAT IS
SUSCEPTIBLE WE HAVE.
SUSCEPTIBLE TO INJURY WE HAVE
DATA THAT SHOWS FROM BERNIE
CROPSEY STUDIES.
AND BY THE WAY THAT DEBT AS
COMPARED WITH INJURY DATABASES
FROM AROUND THE COUNTRY.
WE HAVE DATA THAT SHOWS THAT
THERE IN ALMOST 90%.
OF FATAL INJURIES.
THERE IS PRE EXISTING PATH OLOGY
NOW SOME OF THAT MIGHT GO BACK
TO WIN THE WORSE WAS ON THE FARM
AS A YEARLING.
AND INJURED A LEG AND IT MAY NOT.
BE EVIDENT EVEN EVEN WITH A
DIGITAL RADIOLOGY IT MAY NOT BE
EVIDENT.
SO BECAUSE THESE ARE ANIMALS AND
WE WE THE IT'S ALSO VERY
DIFFICULT TO YOU KNOW
[inaudible]
PERFORM.
IF NOT IMPOSSIBLE TO PERFORM
THINGS LIKE CAT SCANS AND MRI
EYES ON ON ON THESE ANIMALS --
YOU'D HAVE TO SEDATE THEM
DRAMATICALLY TO GET THEM TO
WITHSTAND IT PASTA TO JUST
INCREDIBLY EXPENSIVE BECAUSE ACT
TYPE OF EQUIPMENT DOESN'T EXIST.
FOR RACE HORSES SO IT'S ALL OF
THOSE FACTORS SIR AND I TELL YOU
WE DO IT'S THE IT'S THE MOST
DIFFICULT THING THAT WE WE DEAL
WITH AS A REGULATORY BODY --
HIM.
EVERY YEAR I GUESS HOW DO YOU AT
WHAT POINT.
I MEAN IS THERE IS THERE A
THRESHOLD OF DEATHS AT THESE
RACE.
TRACKS WHERE YOU WERE FINALLY
TRIGGERS --
A DECISION TO SHUT DOWN OR HOW
HOW DO YOU EVALUATE THAT I
UNDERSTAND IT'S DIFFICULT LIKE I
TOTALLY GET THE ECONOMIC
IMPLICATIONS --
BUT WITH THOSE APPLICATIONS ARE
GOING TO BE THERE WHETHER HAVING
TEN DEATHS OR HUNDRED OR FIVE
HUNDRED DEATHS AT YOU KNOW --
AGAIN IN THE CONTEXT OF OF WHAT
I WAS JUST SAYING YOU KNOW THIS
IS -- IN BY
THE WAY I IT IS DIFFICULT FOR ME
TO SIT HER BEFORE YOU AND TALK
ABOUT ALL THESE GAINS THAT WE'VE
MADE OVER THE LAST FEW YEARS.
IN THE SAFETY AND WELFARE OF THE
HORSES WHICH IS TRUE THAT
STATISTICAL.
AND YET IN THIS PERIOD OF TIME
ALL OF A SUDDEN.
WE HAVE THE SITUATION AT SANTA
ANITA --
THAT CONTRADICTS WHAT I'VE JUST
SAID -- WE
ADDRESS THE SITUATION AS IT
COMES UP WE HAD A SIMILAR
SITUATION AT DEL MAR THREE
SUMMERS AGO --
WHERE WE HAD A NUMBER OF FORCES
ON THE TURF COURSE THERE --
SUFFER FATAL INJURIES WE HAD
LIKE SIX IN THE FIRST TWO WEEKS.
AND WE CONVINCED MANAGEMENT WAS
VERY COOPERATIVE. TO TAKE ALL
THE RACING OFF OF THE TURF
COURSE [inaudible]
THEY DID.
AND THE TREND STOPPED.
SO WE'RE AT THE SIMILAR STAGE
NOW I WOULD SAY WE'VE HAD IT'S
BEEN.
SPEND POSITIVE SINCE THEN.
AGAIN WE HAVE THESE GOOD RESULTS
NOW WE HAVE THIS [inaudible]
SITUATION THAT.
IT COULD BE A COMBINATION OF THE
RACETRACK.
THE THE HORSE THAT THAT MAY HAVE
SUFFERED AN INJURY REGARDLESS
THE RACE TRACK.
AND THE FACT THAT WE DO SEA
ANOMALIES NOW AND THEN AND TO
USUALLY WE ONLY.
PUT OUT THE INFORMATION ABOUT
THE FATALITIES THAT THE END OF
THE FISCAL YEAR ONE WE HAVE ALL
THE NEW CROPS HE'S BACK AND WE
KNOW WHAT THE WE HAVE A BETTER
IDEA OF WHAT THE CAUSE AND
EFFECT IS.
SO WE'VE TAKEN THIS FIRST STEP
OF OF CONVINCING THE RACE TRACK
TO SHUT DOWN.
THEY'VE TOLD US THAT IF THAT
WHAT THEY'VE DONE IS THEY'VE
THEY'VE TAKEN THE THERE'S
DIFFERENT COMPONENTS TO THE RACE
TRACTORS THE CUSHION WHICH IS A
SOFT PART.
ON TOP WHICH IS ABOUT THREE AND
A HALF INCHES UNDERNEATH THAT IS
A PAD A PAD OF OF A PRETTY FIRM
SAND.
THEN UNDERNEATH THAT IS THE BASE
SEVERAL LAYERS AGES AND SO FORTH.
SO THEY'VE PEELED AWAY THE TOP
PART OF IT THEY'VE EVALUATED NOW
WHAT'S UNDERNEATH THIS MAN --
MAKE PETERSON ACTUALLY AS PIECE
OF SONAR EQUIPMENT THAT MEASURES
THE HARDNESS --
ALL THE WAY AROUND THE RACETRACK
TO DOING THAT TODAY THEY'VE
THEY'VE.
ASSURED US THAT IF THEY FIND
THAT THERE ARE PROBLEMS.
THAT THEY WILL NOT ONLY CANCEL
TRAINING TOMORROW BUT POSSIBLY
CANCEL RACING ON THURSDAY
DEPENDING ON WHAT THEY FIND COME.
VISIT LAST QUESTION DID YOU HAVE
ANY ESTIMATE AS TO HOW MANY.
COURSES YOU THINK YOU'RE GONNA
DIE THIS YEAR AND AND ON TRACKS
FROM THE STATE.
WELL THIS LAST CALENDAR YEAR
INDIAN RACING AND TRAINING SO
I'M NOT COUNTING CALL OCCURRED
AND I'M AN ARTIST OR SOMETHING
NINETY FOUR WERE LOST.
AND I CAN TELL YOU THAT AND MORE
LIKE A MORE.
HIGHER THIS YEAR THAN LAST SO
FAR AS THE RAIN SEE --
YEAH WE ARE YEAH OF COURSE IT'S
A SHORT WINDOW CALENDAR YEAR
WISE IS YOUR WINDOW FISCAL YEAR
FROM JULY FIRST TOLL NOW.
IT'S SLIGHTLY WORSE THAN IT WAS
LAST YEAR AND NOW YOU'VE LAST
YEAR WAS THE BEST IN. TWENTY
YEARS.
SO THE NUMBERS THIS YEAR ARE NOT
AS GOOD AS LAST YEAR BECAUSE OF
THE FIGURES THAT THAT YOU'RE
TALKING ABOUT.
BUT HERE'S THE THING THEY WERE
FOR CAMERA AT SANTA ANITA THIS
MORNING.
AND WE'VE TRIED TO TO CONVINCE
MANAGEMENT [inaudible]
THAT.
DON'T WAIT FOR US TO SHUT YOU
DOWN.
DO WHATEVER YOU HAVE TO DO TO
STOP THIS.
AND HEY BECAUSE OF THE THE
HEALTH AND SAFETY OF A HORSE AND
IT BEING THE RIGHT THING TO DO.
BUT BE BECAUSE THERE'S EXTREME
SENSITIVITY TO THIS NOT ONLY NOT
ONLY FOR THE PEOPLE THAT DON'T
COME TO THE RACE TRACK
[inaudible]
BUT PEOPLE THAT DO COME TO THE
RACETRACK AND SEE THIS AND SO
IT'S IT'S THE MOST DIFFICULT
PART OF THIS JOB TO TALK ABOUT
AND IT'S THE ONE WHERE WE FEEL --
THAT WE HAVE.
WE FEEL LIKE WE WE WE HAVE A FEW
OPTIONS.
AS I'VE DESCRIBED [inaudible]
CENTER GALGIANI.
IF I'M AN OWNER OF A **** AND I
A DECIDE THAT BECAUSE OF THE
WEATHER I DON'T WANT MY HORSE
TRAINING OR RACING ON A
PARTICULAR DAY.
DO I HAVE THAT OPTION TO PULL MY
HORSE WE DO AND AND AND MY
PENALIZED FOR IT THOUGH.
NO YOU'RE NOT YOU'RE NOT
PENALIZE YOU CAN YOU CAN --
AND YOU WOULD DO IT THREE OR
TRAINER --
YOU IT'S DO YOU TELL YOUR
TRAINER NOT TO RUN MY HORSE IN
THIS PARTICULAR SITUATION
THERE'S NO PENALTY FOR FOR
HAVING OF A HORSE WITHDRAWN
BECAUSE OF THE WEATHER
CONDITIONS IN THE TRACK
CONDITIONS OKAY.
AND WE'VE NOT SEEN THIS KIND OF
RAIN IN THE STATE FOR MORE THAN
TEN YEARS SO I WOULD.
I MEAN I THINK CLEARLY IT'S
BECAUSE OF THE WEATHER AND AND
CHANGES THAT.
WERE UNANTICIPATED AND HADN'T
BEEN PREPARED FOR ON PERHAPS
THERE SHOULD BE CONDITIONS THAT
ARE LAID OUT --
AND ON THOSE PARTICULAR DAYS
WHEN THOSE CONDITIONS EXIST AND
MAY BE.
ON THAT DAY HORSES SHOULDN'T BE
TRAINED AND THEY SHOULDN'T BE
RACING I CAN TELL YOU THAT THAT
THE THE RACETRACK WILL CANCEL
TRAINING --
WHE IN AND IT'S NOT IT'S NOT
SIMPLY TO PROTECT HORSES TO BE
HONEST THEY'RE PREPARING THEY
NEED THAT THEY WILL?
SHUT DOWN THE TRACK TO PROTECTED
SO THAT IT'S NOT TORN UP
AFTERWARDS IS BEEN RUNNING ON IT
AND THEN IT STARTS TO RAIN.
THAN THEY HAVE NO CONTROL OVER
MAINTENANCE OF THE RACE TRACK.
SO -- THEY
WILL DO THAT LREADY NGUYEN
DISCUSSIONS WITH MANAGEMENT OVER
THE WEEKEND --
THEY INDICATED THAT IN THE
FUTURE WITH HOPE.
WHAT WE CALL A SLOPPY RACETRACK
WHICH IS ONE AT THE BEGINNING OF
A RAINSTORM IN THE WATERS MOSTLY
ON TOP OF THE TRACK?
THEY WILL CONSIDER CANCELLING
RACING AT THAT POINT --
AGAIN THIS IS A MANAGEMENT
DECISION THAT NEEDS TO BE MADE
IT'S NOT A REGULATORY DECISION
AT THIS POINT SHORT OF CHANGING
THE LAW --
OR ADOPTING A REGULATION --
THE ONLY THING THAT THE BOARD
CAN DO AS I SAID IS PUSH THEM --
AND IF THAT DOESN'T WORK AND
STOP THEM [inaudible]
HE IT IS MADE.
THANK YOU VERY MUCH --
FOR YOUR TESTIMONY IN ANSWERING --
YOU KNOW THESE THESE QUESTIONS
HERE GRADUATED.
TRIBAL NEGOTIATIONS ADVISER
OFFICER OFFICE FUSE ME --
GOVERNOR NEWSOME GAVIN NEWSOM
GOVERNOR GAVIN THIS [inaudible]
SO TWISTER [inaudible]
GOOD MORNING.
MORNING CHAIRMAN DODD AND GOOD
MORNING MEMBERS OF THE COMMITTEE
I THANK YOU FOR THE OPPORTUNITY
TO BE HERE THIS MORNING AS
PREVIOUSLY MENTIONED MY NAME IS
ANNA NAY MARK.
AND I AM THE TRIBAL NEGOTIATIONS
ADVISER FOR GOVERNOR GAVIN
NEWSOM'S OFFICE.
I'M EXPRESSIONIST I'D TO BE HERE
BECAUSE I JUST STARTED LAST WEEK --
SO IT'S A GREAT OPPORTUNITY TO
MEET YOU ALL.
AND I SPENT MOST OF THE MY
PASSED SEVERAL YEARS OUTSIDE OF
CALIFORNIA --
WHERE I WORK FOR THE FEDERAL
GOVERNMENT ON TRIBAL RELATED
ISSUES RANGING FROM CLIMATE
ADAPTATION TO GAMING TO LAW
ENFORCEMENT?
CULTURAL HERITAGE SO I'VE A
REALLY BROAD KNOWLEDGE OF TRIBAL
LAW AND POLICY.
I'M HONORED TO BE BACK IN MY
HOME STATE THOUGH AND AND I'M
REALLY EXCITED TO HAVE THE
OPPORTUNITY TO WORK WITH EACH
TRIBE.
TODAY I'LL BE DOING A BRIEF
OVERVIEW --
SO GET YOU GUYS TO LUNCH TIME OF
HOW THE GOVERNOR'S OFFICE --
ENGAGES IN TRIBAL COMPACT.
AS PREVIOUSLY MENTIONED --
UNDER THE INDIAN GAMING
REGULATORY ACT COMMONLY KNOWN AS
A GRAPH.
REQUIRED THAT THE FEDERALLY
RECOGNIZED TRIBES WHO ARE
SEEKING TO ENGAGE IN CLASS THREE
GAMING LIKE SLOT MACHINES OR
BANK CARD GAMES SIGN NEGOTIATED
COMPACTS OR AGREEMENTS WITH
STATE GOVERNMENTS TO CLARIFY
RANGE OF JURISDICTIONAL ISSUES.
SURROUNDING THE REGULATION AND
SCOPE OF GAMING.
IN TWO THOUSAND CALIFORNIANS
APPROVED PROPOSITION ONE A A
REFERENDUM PLACED ON THE BALLOT
BY THE LEGISLATURE TO AMEND THE
CALIFORNIA CONSTITUTION TO
AUTHORIZE THE GOVERNOR TO
NEGOTIATE AND CONCLUDE GAMING
COMPACTS SUBJECT TO RATIFICATION
BY THE LEGISLATURE.
PURSUANT TO A GROW.
A COMPACT IS FIRST INITIATED BY
THE TRIBE.
ONCE INITIATED THE GOVERNOR'S
OFFICE AND THE TRIBE ENGAGE IN
NEGOTIATIONS TO DETERMINE THE
CONTENTS OF THE AGREEMENT ON A
GOOD FAITH AND GOVERNMENT TO
GOVERNMENT BASIS.
IN ENGAGING IN THESE COMPAQ'S
THE GOVERNOR'S OFFICE SEEKS TO
FAIRLY BALANCE INTEREST AND FIND
MUTUALLY BENEFICIAL TERMS FOR
THE STATE AND THE TRIBE.
WELL EACH COMPACT IS UNIQUE THEY
GENERALLY IN TO PROMOTE TRIBAL
ECONOMIC DEVELOPMENT STRONG
TRIBAL GOVERNMENTS AND SELF
SUFFICIENCY WHILE MITIGATING OFF
RESERVATION IMPACTS OF THE
FACILITIES AND PROVIDING
MEANINGFUL CONSUMER AN EMPLOYEE
PROTECTIONS.
ONCE AN AGREEMENT HAS BEEN
REACHED THE COMPACT GOES TO THE
GOVERNOR FOR HIS SIGNATURE AND
INCOMES OF FOR THE LEGISLATURE
FOR RATIFICATION BEFORE GOING TO
THE DEPARTMENT OF THE INTERIOR
FOR FINALIZATION.
MANY OF YOU KNOW MY PREDECESSOR --
JOE DILLON AND HE MADE A POINT
TO MAINTAIN OPEN LINES OF
COMMUNICATION WITH THIS
COMMITTEE AND I INTEND TO DO THE
SAME I LOOK FORWARD.
TO A POSITIVE WORKING
RELATIONSHIP I ALSO LOOK FORWARD
TO COLLABORATING WITH SOME MY
COLLEAGUES HERE TODAY AT THE
BUREAU OF GAMBLING CONTROL AND
THE GAMBLING CONTROL COMMISSION
AS WELL AS MANY OTHERS.
I THANK YOU FOR YOUR TIME AND
I'M HAPPY TO TAKE ANY QUESTIONS
PLEASE KEEP IN MIND THIS IS MY
ONE WEEK ANNIVERSARY ON THE JOB.
THANK YOU WE LOOK FORWARD TO
WORKING WITH YOU TO ANY
QUESTIONS.
COMMENTS.
SEAT WERE ALREADY CUT MISGUIDED
VERY KIND.
WE APPRECIATE YOUR TESTIMONY
HERE TODAY AND WE LOOK FORWARD
TO WORKING WITH YOU THANK YOU
VERY MUCH I CONFUSE ALL THANK
YOU ALL.
OKAY AT THIS TIME WE'RE GONNA A
CALL UP ANYBODY THAT WISHES --
TO COMMENT TO FOR PUBLIC COMMENT.
PLEASE COME UP TO THE MIKE OVER
HERE.
ANYBODY WISHING --
TO MAKE ANY COMMENTS.
GOING GOING GONE --
WHAT?
A LARGE GARDEN.
THIS THIS.
WHERE THIRTY ONE PERSON THAT
WOULD KEEP YOU FROM GOING TO
LUNCH AND?
SENATORS --
SENATOR DODD THANK YOU VERY MUCH
THE OPPORTUNITY ADDRESS YOU.
MY NAME'S RUDY BERMUDA'S.
ON EXECUTIVE DIRECTOR OF THE
CALIFORNIA CITIES FOR SELF
RELIANCE.
BUT WE ARE A JOINT POWERS
AUTHORITY --
WE ARE GRANTED THIS IS TORY
UNDER CALIFORNIA GOVERNMENT CODE
SECTION.
SIX FIVE ZERO ZERO WE REPRESENT
THE INTEREST OF SEVEN CITIES.
IN IT LA COUNTY.
CITIES HERE CARD ROOM
[inaudible]
YOU.
AS WELL AS THE ECONOMIC
INTERESTS IN VIABILITY CARD ROOM
[inaudible]
BECAUSE WHAT WASN'T STATED HERE
TODAY.
WAS THAT CARD ROOMS ARE THE LIFE
BLOOD.
OF LOCAL GOVERNMENTS.
THROUGHOUT THE STATE OF
CALIFORNIA.
WHOSE CARD ROOMS IN THIRTY TWO
COUNTIES [inaudible] EIGHTY
CITIES.
AND IN OUR PARTICULAR REGION IN
LA COUNTY.
CARD ROOMS HAVE A DRAMATIC
IMPACT ON THE VIABILITY OF
CITIES FOR INSTANCE CITY OF
HAWAIIAN GARDENS.
IT 80%.
CLOSE 280% OF ITS GENERAL FUND
BUDGET.
COMES FROM REVENUES PAID BY THE
CARD ROOM TO LOCAL CARD ROOM TO
THE GOVERNOR TO THE GOVERNANCE
[inaudible]
THAT MONEY.
BASE FOR THE ENTIRE READING OF
THAT CITY.
THE WITHDRAWAL OF BLACK JACK.
IS 50%.
OF THAT REVENUE.
ON AN ANNUAL BASIS.
AN EFFECTIVE ROTATION.
AND WHAT WE'VE HEARDYOU IN THE
TO THE RUMOR MILL AND WE KNOW A
RUMORS ARE IN THIS BUILDING AS
WELL AS OTHER PLACES.
WOULD BE DEVASTATING.
TO LOCAL GOVERNMENT NOT ONLY IN
OUR AREA BUT THROUGHOUT THE
STATE OF CALIFORNIA [inaudible]
AND WELL WE HAVE PARTICIPATED IN
EVERY WORKSHOP --
HELD BY THE BUREAU.
AND PROVIDED TESTIMONY AS TO THE
DRAMATIC IMPACT THE DEVASTATING
IMPACT ON THE FINANCING OF LOCAL
GOVERNMENT.
THE BUREAU STILL HASN'T COME UP
WITH A PLAN ON HOW THEY'RE GOING
TO BACK FILL ALL THE SERVICES
LOST TO MILLIONS AND MILLIONS OF
CALIFORNIANS.
AS A RESULT OF THEIR ACTION
SHOULD THEY TAKE IT.
THIS IS SOMETHING THAT.
NEEDS TO BE CONTEMPLATED BECAUSE
IT'S GONNA FALL ON THE
LEGISLATURE SHOULDERS LIKE ANY
OTHER MAJOR PROBLEM.
ANOTHER EXAMPLE IS IS GUARDINO
HAS TO CARD ROOMS 40% OF ITS
INCOME COMES FROM.
SIMS FROM THE CARD ROOMS IT
PROVIDES THE RESOURCES FOR THE
REVENUE RESOURCES FOR ALL OF ITS
PUBLIC SAFETY [inaudible]
SO.
AS I'VE HEARD TESTIMONY TODAY.
THE ONE THING THAT RESONATES.
IN A IN A SHOULD RESONATE WITH
YOU [inaudible]
IS THAT.
OF ALL THE STAKE HOLDERS THE
ONLY ONE THAT WASN'T AT THE
TABLE ON A REGULAR BASIS.
THOSE THOUGH WE HAVE TRIED. TO
BE THERE.
BUT WERE NEVER INVITED TO ANY OF
THESE MEETINGS HELD BY THE
BUREAU OR ANY OTHER REGULATORY
BODY REGARDING THESE ISSUES.
BEFORE THEY EVEN CONTEMPLATING
HAVING NO OF WORKSHOPS OR IN
PART OF THE COMMISSION.
OF REGULATION CHANGE.
ON ADVERTISING.
WAS A CITIES [inaudible]
NOW.
WHAT WAS IT ALSO SAID IS THAT WE
SHARE JURISDICTION?
WE POLICE THE GAMES.
WE AUTHORIZE THE GAMES.
WE DO BACKGROUNDS.
WE LICENSE THE CARD ROOMS AND
THE GAMES.
AND THROUGH OUR CONDITIONAL USE
PERMITS WE OVERSEE THE
EVERYTHING THAT OPERATIONAL.
ACTIVITY AT THE CARD ROOMS.
IN FACT WE PROVIDE MORE
OVERSIGHT AND POLICE SCENE.
OF THE CARD ROOMS THROUGHOUT THE
STATE OF CALIFORNIA THAN THE
BUREAU DOES [inaudible]
SO.
I LEAVE YOU WITH THAT --
WE WOULD LIKE TO HAVE MORE
INTERACTION OF WITH THE BUREAU --
BEFORE THEY EVEN DRAFT
REGULATIONS AND THEY NEED TO
UNDERSTAND.
IT'S NOT JUST A GAME
[inaudible]
IT'S THE LIVELIHOOD IN THE LIVES
OF MILLIONS OF CALIFORNIANS WHO.
DEPENDS ON THE REVENUES AND THE
SERVICES THAT THOSE REVENUES
PROVIDE.
ALL LOCAL GOVERNMENTS IS TO OUT
CITY CALIFORNIA [inaudible]
THANK YOU.
THANK YOU ANY BODY ELSE WISHING
TO ADDRESS.
THE TWENTY I WITHOUT AT ONCE
AGAIN LIKE TO THANK ALL OUR WITH
THIS IS --
TO TESTIFIED TODAY AND THANK ALL
OF YOU FOR COMING THIS MEETING
IS ADJOURNED [inaudible]
THE RELEASE