20250AB__264499INT INTRODUCED 2026-02-20 2025 AB INT Introduced by Assembly Member Blanca Rubio LEAD_AUTHOR ASSEMBLY Blanca Rubio

An act to amend Sections and of the Business and Professions Code, relating to gambling. gambling Gambling Control Act.

(1) Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Under existing law, the commission consists of members appointed by the Governor, subject to confirmation by the Senate. Existing law authorizes the Governor to remove any member of the commission for cause, as specified. This bill would additionally require the Governor to notify the Legislature of the removal of any member of the commission.

(2) Existing law prohibits a corporation from being eligible for a state gambling license unless its officers, directors, and shareholders individually apply for and obtain a state gambling license. Existing law also requires every key employee to apply for and obtain a key employee license.

Existing law requires an officer, director, or key employee of a corporate owner licensee to apply for a license within calendar days after they become an officer, director, or key employee of the corporation and requires the corporation to immediately remove an officer or director who fails to apply for a license within that 30-day period. This bill would make technical, nonsubstantive changes to these provisions. MAJORITY NO YES NO NO NO NO NO NO NO NO The people of the State of California do enact as follows:

SECTION 1.

Section of the Business and Professions Code is amended to read: 19813. (

a) The term of office of a member of the commission is four years. (

b) The Governor shall appoint the members of the commission, subject to confirmation by the Senate, and shall designate one member to serve as chairperson. Vacancies shall be filled within days of the date of the vacancy by the Governor, subject to confirmation by the Senate. (

c) The Governor may remove a member of the commission for incompetence, neglect of duty, or corruption upon first giving the member a copy of the charges and an opportunity to be heard. The Governor shall notify the Legislature of the removal of a member of the commission. SEC. 2.

Section of the Business and Professions Code is amended to read: 19883. (

a) To the extent required by this chapter, officers and directors, shareholders, lenders, holders of evidence of indebtedness, underwriters, agents, or employees of a corporate owner licensee shall be licensed individually. The corporation shall require these persons to apply for a gambling license, and shall notify the department of every change of corporate officers, directors, or key employees within business days after the change. An officer, director, or key employee who is required to apply for a license shall apply for the license within calendar days after they become an officer, director, or key employee. (

b) The corporation shall immediately remove an officer or director required to apply for a license from an office or directorship if any of the following apply to that officer or director:

(1) They fail to apply for the license within calendar days after becoming an officer or director.

(2) They are denied a license.

(3) Their license is revoked. (

c) If the license of any officer or director is suspended, the corporation, immediately and for the duration of the suspension, shall suspend that officer or director. (

d) If a shareholder who is required to apply for a gambling license fails to apply for the license within the time required, the shareholder shall be deemed to have been denied a license for purposes of subdivision (

b) of

Section 19882. (

e) If a person, other than an officer, director, or shareholder, who is required to apply for a gambling license fails to do so, the failure may be deemed to be a failure of the corporate owner licensee to require the application.