GAVIN NEWSOM, GOVERNOR OFFICE OF ADMINISTRATIVE LAW REGISTER 2020, NUMBER 25−Z PUBLISHED WEEKLY BY THE OFFICE OF ADMINISTRATIVE LAW JUNE 19, 2020 PROPOSED ACTION ON REGULATIONS TITLE 2. SECRETARY OF STATE CAL−ACCESS Software Vendor Certification — Notice File Number Z2020−0604−02 ....................... 855 TITLE 4. CALIFORNIA GAMBLING CONTROL COMMISSION Licensing — Notice File Number Z2020−0414−02 .................................................... 858 TITLE 9.

DEPARTMENT OF HEALTH CARE SERVICES Adult Residential Treatment Services (ARTS) Provider Requirements — Notice File Number Z2020−0608−02 ......................................... 879 TITLE 15. DEP ARTMENT OF CORRECTIONS AND REHABILITATION Flash Incarceration Repeal — Notice File Number Z2020−0608−01 ...................................... 884 TITLE 16. BOARD OF VOCATIONAL NURSING AND PSYCHIATRIC TECHNICIANS Substantial Relationship & Rehabilitation Criteria — Notice File Number Z2020−0604−01 ................... 886 TITLE 16.

CEMETERY AND FUNERAL BUREAU Licensure and Regulation of Alkaline Hydrolysis — Notice File Number Z2020−0609−03 ..................... 890 TITLE 16. MEDICAL BOARD OF CALIFORNIA Postgraduate Training — Notice File Number Z2020−0609−05 ......................................... 894 TITLE 16. VETERINARY MEDICAL BOARD Duties of Supervising Veterinarian — Notice File Number Z2020−0609−02 ................................ 898 TITLE 17. AIR RESOURCES BOARD Conflict−of−Interest Code — Notice File Number Z2020−0609−06 ....................................... 901 TITLE 22.

DEPARTMENT OF CHILD SUPPORT SERVICES Compliant Resolution State Hearing Amendment — Notice File Number Z2020−0603−01 .................... 902 TITLE 27. OFFICE OF ENVIRONMENTAL HEALTH HAZARD ASSESSMENT Naturally Occurring Lead in Candy — Notice File Number Z2020−0609−04 ............................... 904 (Continued on next page) Time- Dated Material

GENERAL PUBLIC INTEREST DEPARTMENT OF FISH AND WILDLIFE Fish and Game Code

Section 1653 Consistency Determination Request for Truckee River Fish Habitat Enhancement Project, Tracking Number 1653−2020−054−001−R2, Nevada County ............................................ 907 DEPAR TMENT OF FISH AND WILDLIFE Fish and Game Code

Section 1653 Consistency Determination Request for Upper Noyo River Fish Passage Improvement and Sediment Reduction Project, Tracking Number 1653−2020−055−001−R1, Mendocino County .................. 908 OAL REGULATORY DETERMINATION DEPARTMENT OF CORRECTIONS AND REHABILITATION 2020 OAL DETERMINATION NUMBER 4 Non−Designated Programming Facilities; Memoranda dated April 24, 2018, April 25, 2019, and September 10, 2019, issued by the Department of Corrections and Rehabilitation ........................................... 908

SUMMARY OF REGULATORY ACTIONS Regulations filed with Secretary of State ........................................................... 912 The California Regulatory Notice Register is an official state publication of the Office of Administrative Law containing notices of proposed regulatory actions by state regulatory agencies to adopt, amend or repeal regulations contained in the California Code of Regulations. The effective period of a notice of proposed regulatory action by a state agency in the California Regulatory Notice Register shall not exceed one year [Government Code § 11346.4(b)].

It is suggested, therefore, that issues of the California Regulatory Notice Register be retained for a minimum of 18 months. CALIFORNIA REGULA TORY NOTICE REGISTER is published weekly by the Office of Administrative Law, 300 Capitol Mall, Suite 1250, Sacramento, CA 95814-4339. The Register is printed by Barclays, a subsidiary of West, a Thomson Reuters Business, and is offered by subscription for $205.00 (annual price). To order or make changes to current subscriptions, please call (800) 328−4880. The Register can also be accessed at http://www.oal.ca.gov.

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z PROPOSED ACTION ON REGULATIONS Information contained in this document is published as received from agencies and is not edited by Thomson Reuters. TITLE 2. SECRETARY OF STATE CAL−ACCESS Software Vendor Certification NOTICE IS HEREBY GIVEN that the California Secretary of State (SOS) is proposing to take the action described in the Informative Digest. Any person inter- ested may present statements or arguments in writing relevant to the action proposed.

Written comments, in- cluding those sent by mail or e−mail to the address listed under Contact Persons in this Notice, must be received by the SOS at its office not later than August 3, 2020. A public hearing is not scheduled. A public hearing will be held if any interested person, or his or her duly authorized representative, submits a written request for a public hearing to the contact persons listed below no later than 15 days prior to the close of the written com- ment period.

Following the public hearing, if one is re- quested, or following the written comment period if no public hearing is requested, the SOS, upon its own mo- tion or at the instance of any interested party, may there- after adopt the proposals substantially as described be- low or may modify such proposals if such modifica- tions are sufficiently related to the original text.

With the exception of technical or grammatical changes, the full text of any modified proposal will be available for 15 days prior to its adoption from the person designated in this Notice as contact persons and will be provided to those persons who submit written or oral testimony re- lated to this proposal or who have requested notification of any changes to the proposal. Public Comment Period: June 19, 2020 through Au- gust 3, 2020. AUTHORITY AND REFERENCE Government Code

section 84602(b)(1) requires the SOS to develop an online filing and disclosure system that, among other criteria, ensures the security of data entered and stored in the system. Government Code

section 84602(b)(2) requires the SOS to accept test files from software vendors and others wishing to file reports electronically. These regulations implement those statutory requirements. Authority cited:

Section 84602, Government Code. References cited: Sections 11020, 81004, 82026, 84605, and 91000.5, Government Code;

Section 1633.11, Civil Code. INFORMATIVE DIGEST As required by Government Code

section 84602, in 1999 the SOS created CAL−ACCESS, a database and filing system used to make much of the lobbying and campaign finance information required by the Political Reform Act of 1974 (PRA) available online to the pub- lic at no cost to users. The system functioned well for years, but is now 20 years old, components of it are no longer supported by the vendor, and as a result the sys- tem has periodically crashed and denied public access. Senate Bill (SB) 1349 (Chapter 845, Statutes of 2016) modified Government Code

section 84602 to require the SOS to replace CAL−ACCESS with a new system that uses a data−driven means or method that allows fil- ers to submit required filings free of charge in a manner that facilitates public searches of the data. Pursuant to Government Code

section 84602(b), the SOS has drafted these proposed regulations to address the requirement for the system replacing the current CAL−ACCESS, the CAL−ACCESS Replacement Sys- tem (CARS), that software vendors be able to file re- ports electronically. The SOS consulted with software vendors in drafting these regulations. The SOS is proposing to add

Chapter 16 to the Cali- fornia Code of Regulations to establish a certification process for software vendors who wish to file electroni- cally with the CARS through an Application Program- ming Interface (API) that the SOS is creating to achieve this electronic filing. The software vendors requested that the SOS include the option of filing through an API in the CARS system and the SOS agreed to make sure the system retained that feature. Filing through an API enables software vendors to file statements and reports rapidly for multiple clients near the filing deadlines.

These regulations only apply to software vendors who file through the API, and do not apply to filers who file in the CARS by other means, such as by bulk upload or filing individually with the system. Policy Statement Overview/Anticipated Benefits of Proposal With the move to exclusive electronic filing, it is criti- cal that the SOS ensures the information a filer attests to is what they had intended to file.

This is especially im- portant with CARS given that filers will submit state- ments and reports that comply electronically with the requirement to sign under penalty of perjury, but with- out original signatures. Under the PRA, candidates, 855

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z treasurers and other filers are required to verify and sign under penalty of perjury that to the best of their knowl- edge the information they submit is true, complete and correct. It is necessary that the SOS ensure reports or statements filed through the API comply with this re- quirement. These regulations allow the SOS to specifi- cally delineate how this shall be done.

These regula- tions provide for a certification process for software vendors that protects the security of the data transmitted into CAL−ACCESS and delineates expectations on software vendors for providing data compliant and con- sistent with the PRA, including future amendments to that law. These regulations clarify the application and certification procedures for software vendors to use the API. This protects the software vendors because it spells out the certification and decertification process as well as how issues can be resolved.

A regulation that re- quires software vendors to make changes to their soft- ware when necessary prevents them from holding up changes the SOS makes to CAL−ACCESS, including changes needed due to changes in the law. In addition, Government Code

section 84602(b)(2)(

A) requires the Secretary of State to pub- lish and make available to the public a list of software vendors who have submitted acceptable test files for the CARS system. Vendors who have completed the certifi- cation process will be published on this list. Further, vendors may be certified to submit information for some campaign or lobbying forms, but not the full suite of forms. Through the certification process, vendors can clearly designate which forms they are seeking ap- proval to be able to file through the API. The proposed regulations accomplish the mandate of Government Code

section 84602. The benefit of these proposed regulations is that they will provide guidance to the SOS and software vendors on the procedure for being certified to use the API to transmit data electroni- cally to the CARS.

These regulations protect software vendors by preventing them from being unreasonably decertified as the law or CAL−ACCESS changes and furthers the purposes of the PRA by ensuring only accu- rate data is transmitted over the API. 1 For further discussion of the benefit analysis, please see “Results of the Economic Impact Assessment”. 1 Software vendors transmitting accurate data over the API refers to sending data in the proper format that fills the right fields, and matches what the filer submitted to the vendor, among other things. (It does not refer to the correctness of the underlying dollar amounts and totals which the filer is responsible for reporting and verifying.) Consistency/Compatibility with Existing State Regulations After conducting an evaluation for regulations in this area, the SOS has determined that these are the only reg- ulations dealing with certifying software vendors to use the API.

Therefore, the proposed regulations are neither inconsistent nor incompatible with existing state regulations. Documents Incorporated by Reference: None. Documents Relied Upon in Preparing the Regula- tions: None. FISCAL IMPACT ESTIMATES Fiscal Impact on Public Agencies Including Costs or Savings to State Agencies or Costs/Savings in Federal Funding to the State: None. Nondiscretionary Costs/Savings to Local Agencies: None. Local Mandate: None. Cost to Any Local Agency or School District for Which Government Code Sections 17500−17630 Re- quire Reimbursement: None.

Business Impact: The SOS has made an initial deter- mination that the proposed regulatory action will have no significant statewide adverse economic impact di- rectly affecting business, including the ability of Cali- fornia businesses to compete with businesses in other states. Numerous software vendors already electroni- cally file with the existing CAL−ACCESS system. These regulations provide clarity for how they will con- tinue those activities with the CARS.

The new certifica- tion process is necessary to ensure compliance with the new data−driven method for filers to submit required filings but does not significantly change the relation- ship between CAL−ACCESS and software vendors. Significant Statewide Adverse Economic Impact Di- rectly Affecting Business, Including the Ability to Compete: The SOS has made an initial determination that this regulatory action will not have a significant, statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states.

Cost Impact on Representative Private Person or Business: The SOS is not aware of any cost impacts that a representative private person or business would nec- essarily incur in reasonable compliance with the pro- posed action. Effect on Housing Costs: None. Effect on Small Business: The SOS recognizes that these regulations apply to small businesses insofar as current software vendors who file with the existing CAL−ACCESS are small businesses. However, the SOS has determined that these regulations will not im- 856

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z pact those small businesses in any significant manner. The certification process provided for by these regula- tions is necessary to ensure the accurate transmission of data into the CARS, but does not significantly change the relationship between CAL−ACCESS and software vendors. RESULTS OF THE ECONOMIC IMPACT ASSESSMENT The proposed regulations accomplish the mandate of Government Code

section 84602. The proposed regula- tions also further the SOS’s dedication to making gov- ernment more transparent and accessible in the areas of elections, business, political campaigning, legislative advocacy, and historical treasures. Lastly, these regula- tions protect the integrity of information to the public seeking government information electronically, as well as providing filers with a sound electronic filing process. As a result, this indirectly benefits the general welfare of California.

These proposed regulations will provide guidance to the SOS and software vendors on the procedure for be- ing certified to use the API to transmit data electronical- ly to the CARS. These regulations protect software ven- dors by preventing them from being unreasonably de- certified as the law or CAL−ACCESS changes and fur- thers the purposes of the PRA by ensuring only accurate data is transmitted over the API.

These regulations are not anticipated to create or eliminate jobs within the State of California, create or eliminate existing businesses within the State of Cali- fornia, or expand or eliminate existing businesses with- in the State of California. The benefits of these regula- tions are to comply with the legislative mandate for the SOS to allow software vendors to file reports electroni- cally in the CARS. The full Economic Impact Statement is presented in the Initial Statement of Reasons.

CONSIDERATION OF ALTERNATIVES The SOS must determine that no reasonable alterna- tive to the regulations it considered or that has otherwise been identified and brought to its attention would either be more effective in carrying out the purpose for which the action is proposed or would be as effective and less burdensome to affected private persons or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law than the proposal described in this Notice.

The SOS considered the following alternatives:  Allowing open access to the CARS API so that any party could use it to transmit data electronically to the system.  Allowing software vendors to obtain access to the CARS API without being certified.  Allowing for the electronic transmission of data into the CARS through an API or other methods but requiring filers to log into the CAL−ACCESS system to verify the content of their submission before it can be submitted. The SOS determined that a certification process for software vendors is the best option relative to those stat- ed alternatives.

Allowing open access to the API creates an unreasonably high risk that inaccurate data will be posted to CAL−ACCESS. This also creates an unrea- sonable risk of compromise to the information security of the CARS. Approving vendors without a regulatory certification process creates a less transparent process for software vendors to obtain access to the API. A reg- ulatory process describes software vendors’ responsi- bilities to the SOS and CAL−ACCESS, but more im- portantly delineates a neutral and non−arbitrary process for approval to use the API and procedures for de− certification.

Requiring filers to log into CAL− ACCESS to verify their data before submission does not conform to past practice under the law of software vendors filing rapidly for multiple clients with CAL− ACCESS through a means external to logging in to CAL−ACCESS. The SOS will, however, offer an alter- native means to submit data to the CARS that does not require software vendor certification. This is the bulk upload process, where filers will transmit the data in bulk and then log in to CAL−ACCESS to certify it.

This option will be available to software vendors who choose not to make use of the API and related certifica- tion process for whatever reason. Any interested person may present statements or ar- guments relevant to the above determinations. A V AILABILITY OF THE INITIAL STATEMENT OF REASONS, THE TEXT OF PROPOSAL AND THE RULEMAKING FILE The SOS has prepared an Initial Statement of the rea- sons for the proposed action and has available all the in- formation upon which the proposal is based. The Initial Statement of Reasons is available on the SOS’s website.

Copies of the express language of the proposed regu- lations, any document incorporated by reference, the initial statement of reasons, and all of the information upon which the proposal is based, may be obtained throughout the rulemaking process upon request from the SOS contact or on the website listed below. 857

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z A V AILABILITY AND LOCATION OF THE FINAL STATEMENT OF REASONS AND RULEMAKING FILE A Final Statement of Reasons will be created after the closing of the public comment period. A copy of the fi- nal statement of reasons can be obtained once it has been prepared from the contact persons named below or by accessing the website listed below.

CONTACT PERSONS Inquiries or comments concerning the proposed rule- making action may be addressed to: Taylor Kayatta California Secretary of State 1500 11 th St., Room 495 Sacramento, CA 95814 (916) 695−1530 tkayatta@sos.ca.gov The backup contact person is: Hyla Wagner California Secretary of State 1500 11 th St., Room 495 Sacramento, CA 95814 (916) 653−6224 hwagner@sos.ca.gov Website Access: Materials regarding this proposal can be found at: https://www.sos.ca.gov/ administration/regulations/. TITLE 4.

CALIFORNIA GAMBLING CONTROL COMMISSION Licensing CGCC−GCA−2020−01−R NOTICE IS HEREBY GIVEN that the California Gambling Control Commission (Commission) is proposing to take the action described in the Informa- tive Digest after consideration of all relevant public comments, objections, and recommendations received concerning the proposed action.

Comments, objec- tions, and recommendations may be submitted as follows: WRITTEN COMMENT PERIOD Any interested person, or his or her authorized repre- sentative, may submit written comments relevant to the proposed regulatory action to the Commission at any time during the 45−day public comment period, which closes on August 4, 2020. Written comments relevant to the proposed regulatory action may be sent by mail, facsimile, or e−mail, directed to one of the individuals designated in this notice as a contact person.

To be eligi- ble for the Commission’s consideration, all written comments must be received at its office no later than midnight on August 5, 2020. Comments sent to per- sons and/or addresses other than those specified under Contact Persons, or received after the date and time specified above, will be included in the record of this proposed regulatory action, but will not be summarized or responded to regardless of the manner of transmission. PUBLIC HEARING The Commission has not scheduled a public hearing on this matter.

Any interested person, or his or her au- thorized representative, may request a hearing pursuant to Government Code

section 11346.8. A request for a hearing should be directed to the person(

s) listed under Contact Persons no later than 15 days prior to the close of the written comment period. ADOPTION OF PROPOSED ACTION After the close of the public comment period, the Commission, upon its own motion or at the instance of any interested party, may thereafter formally adopt the proposals substantively as described below or may modify such proposals if such modifications are suffi- ciently related to the original text.

With the exception of technical or grammatical changes, the full text of any modified proposal will be available for 15 days prior to its adoption from the person designated in this Notice as contact person and will be mailed to those persons who submit oral or written testimony related to this proposal or who have requested notification of any changes to the proposal.

AUTHORITY AND REFERENCE Pursuant to the authority vested by sections 19800, 19801, 19811, 19816, 19823, 19824, 19825, 19826, 19827, 19840, 19841, 19844, 19850, 19851, 19852, 19853, 19854, 19860, 19862, 19864, 19869, 19870, 19876, 19883, 19893, 19912, 19914, 19920, 19924, 19951, 19955, 19963, 19982, and 19984 of the Busi- ness and Professions Code; and to implement, interpret or make specific sections 7.5, 10, 19800, 19801, 19805, 19811, 19816, 19823, 19824, 19825, 19826, 19827, 19840, 19841, 19844, 19845, 19846, 19850, 19851, 19852, 19853, 19854, 19855, 19856, 19857, 19858, 19859, 19860, 19861, 19862, 19864, 19865, 19866, 858

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z 19867, 19868, 19869, 19870, 19871, 19873, 19876, 19877, 19880, 19881, 19883, 19890, 19891, 19893, 19910, 19911, 19912, 19914, 19920, 19924, 19930, 19931, 19940, 19943, 19951, 19954, 19955, 19960, 19963, 19982, and 19984 of the Business and Profes- sions Code, the Commission is proposing to adopt the following changes to Chapters 1, 2, 2.1, 2.2, 3, 4, 5, 6, 7, 8, 10 and 11 of Division 18 of Title 4 of the California Code of Regulations.

INFORMATIVE DIGEST AND POLICY STATEMENT OVERVIEW I NTRODUCTION: The California Gambling Control Commission (Commission) is the state agency charged with the ad- ministration and implementation of the California Gambling Control Act (Act or GCA). 1 Under the Act, the Commission is tasked with assuring that licenses, registrations, approvals, and permits (including work permits) are not issued to, or held by, unqualified or dis- qualified persons, or by persons whose operations are conducted in a manner that is inimical to the public health, safety, or welfare. 2 These regulations imple- ment various aspects of the Act and provide guidance to the procedures required to determine the suitability to individuals for licensure and other requirements of the Act.

These regulations would replace the Commis- sion’s five current registration and licensing processes with a single unified process across all license categories. A majority of the proposed changes consist of a gen- eral reorganization of the regulations and the combina- tion of similar but separate processes. Additionally, clarity and specificity are provided in the licensing process. Finally, the program for licensing gambling businesses and gambling business employees is repealed. E XISTING LAW: Business and Professions Code

section 19811, subdi- vision (b), vests the Commission with jurisdiction over all persons or things having to do with the operations of gambling establishments in this state. Business and Professions Code

section 19824, pro- vides the Commission with “all powers necessary and proper to enable it fully and effectually to carry out the policies and purposes of” the Act. 1 Business and Professions Code, Division 8,

Chapter 4,

section 19800 et seq. 2 Business and Professions Code

section 19823, subdivision (a), paragraph (1). Business and Professions Code

section 19825 of the Business and Professions Code provides authority for the Commission to elect to utilize the administrative procedures act in place of a hearing or meeting of an ad- judicative nature under the GCA. Business and Professions Code

section 19826, in per- tinent part, assigns the Bureau with the responsibility to investigate suspected violations of the Act; to investi- gate complaints against licensees; to initiate appropri- ate disciplinary actions; and, to approve the play of any controlled game, as specified. Business and Professions Code

section 19840 allows the Commission to adopt regulations for the administra- tion and enforcement of the Act. Business and Professions Code

section 19841, subdi- vision (c), provides the Commission the authority to adopt regulations that implement the provisions of the Act relating to licensing and other approvals. Business and Professions Code

section 19841, subdi- vision (h), mandates that the Commission’s regulations shall “[p]rescribe minimum procedures for adoption by owner licensees to exercise effective control over their internal fiscal and gambling affairs,” as specified. Sub- division (

i) provides that the Commission’s regulations shall “[r]estrict limit or otherwise regulate any activity that is related to the conduct of controlled gambling, consistent with the purposes of” the Act. Business and Professions Code

section 19841, subdi- vision (

o) provides authority for the Commission to re- strict, limit, or otherwise regulate any activity that is re- lated to the conduct of controlled gambling. Business and Professions Code

section 19861 pro- vides criteria and conditions for the issuance of a gam- bling license for a gambling establishment that may not be open to the general public, as specified. Business and Professions Code

section 19870, subdi- vision (

a) provides authority for holding evidentiary hearings, and states that “the Commission, after consid- ering the recommendation of the chief and any other testimony and written comments as may be presented at the meeting, or as may have been submitted in writing to the commission prior to the meeting, may either deny the application or grant a license to an applicant who it determines to be qualified to hold the license.” Business and Professions Code

section 19871, subdi- vision (

a) provides authority for promulgating regula- tions pertaining to the evidentiary hearing process, and provides a list of items that must be part of the process by stating that “[t]he Commission meeting described in

section 19870 shall be conducted in accordance with regulations of the Commission . . .” Business and Professions Code

section 19984, subdi- vision (b), provides the Commission the authority to es- tablish reasonable criteria for any person or entity that provides proposition player services to gambling 859

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z establishments. Under this section, the Commission may impose disclosures, approvals, conditions, or limi- tations as it deems necessary to protect the integrity of controlled gambling. Business and Professions Code

section 19984, subdi- vision (c), provides the Department of Justice 3 the au- thority to perform background checks, financial audits, and other investigatory services as needed, pursuant to Commission regulations, to assist the Commission in regulating Third−Party Providers of Proposition Player Services (TPPPS). EFFECT OF REGULATORY ACTION: This proposed action amends the Commission’s li- censing regulations to better implement various aspects of the Act in order to provide a consistent, streamlined licensing process.

These regulations provide clear di- rection by ensuring clarity and uniformity for optimal oversight and compliance. A NTICIPATED BENEFITS OF PROPOSED REGULATION: These proposed regulations will have the benefit of providing specific procedures to the entire application process, from applying to the Commission for a license or work permit through review by the Bureau and Com- mission.

This streamlining and making consistent of all processes will have the benefit of making the applica- tion process faster while strengthening the protection to the public by ensuring that only people of good charac- ter, honesty, and integrity are allowed to work in con- trolled gaming. Additional aspects of the regulations have been up- dated to provide clarity and consistency.

These include: expanding the ability to appoint someone to assist an applicant or license to all licensing categories; expand- ing the defined terms to provide further clarity to the Commission’s regulations; reorganizing Commission forms to reduce both the number of forms and the re- moval of unnecessary questions; and, updating Com- mission regulations for other technical changes that will clarify and improve the functions of the Bureau and Commission.

S PECIFIC PROPOSAL: This proposed action will make changes within Divi- sion 18 of Title 4 of the California Code of Regulations, as follows: A general change has been made in the proposal to re- place the word “shall” with other words less subject to

interpretation. 3 In the Act, “department” refers to the Department of Justice. While the Act assigns certain powers and authority to the depart- ment, in actual practice the responsibility for fulfilling the obliga- tions imposed upon the department is delegated to the Bureau of Gambling Control, pursuant to Business and Professions Code

section 19810.

CHAPTER 1. GENERAL PROVISIONS

ARTICLE 1.

DEFINITIONS AND GENERAL PROCEDURES Amend

Section 12002. General

Definitions. This

section provides general

definitions for overall use in this division. As part of this proposal, new defini- tions are proposed,

definitions are moved from other sections, and one definition is repealed. Additional changes have been proposed to other

definitions, in- cluding a general renumbering to reflect the new and re- pealed

definitions. Amend

Section 12003. General Requirements. This

section provides general requirements related to the storage of records. To be consistent with other changes in this proposed action, the reference to gam- bling businesses in subsection (

b) is removed. Addi- tionally, this

section is updated to be consistent with

definitions in

Section 12002. Subsection (

c) is revised to change the requirement for changing an approved location from “within five days after” to “prior to.” Amend

Section 12004. Notification of Contact Information Change. This

section provides instructions to licensees and holders of work permits on how to notify the Bureau of any changes to their contact information. This

section and attached form are updated to be consistent with def- initions in

Section 12002. Adopt

Section 12005. Prohibited Player−Dealer Participation. This

section provides prohibited activities that an in- dividual may not engage in without have a TPPPS busi- ness license and TPPPS contract, either as an owner or an employee, in any group or entity that provides propo- sition player services without having a TPPPS business license and TPPPS contract. Amend

Section 12006. Service of Notices, Orders, and Communications. This

section provides standards for notices that are required by Commission regulation. This provision is modified to clarify that they apply to notices sent to holders of a work permit. Repeal

Section 12008. Registration and License Application Fees.

Section 12008 provides for all of the application fees associated with each license type broken down by regu- lar, temporary, and renewal licenses. Amend

Section 12014. Subpoenas. This

section provides instructions and processes for parties to issue subpoenas under the Commission’s statutory authority. This

section is revised to provide a name to the attached form and reformat the form to 860

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z better match other forms. Additionally, the form is renumbered to CGCC−CH1−02 (New 05/20). Amend

Section 12015. Withdrawal of Applications. New subsection (

g) provides that a temporary or in- terim license is not automatically cancelled but is in- stead cancelled if the Commission grants the withdraw- al request. Amend

Section 12017. Abandonment of Applications. New subsection (

f) provides that when abandonment is determined, any associated temporary or interim li- cense is automatically cancelled as well. Amend

Section 12035. Issuance of Interim Renewal Licenses. This

section provides standards and conditions for is- suing an interim renewal license. Paragraph (4) of subsection (

b) is amended to a re- place regular license with initial or renewal license. Adopt

Section 12040. Mandatory and Discretionary Grounds for Denial This

section provides minimum criteria for the denial of a license. Currently, three sections (12105, 12346, and 12355) provide these standards for work permits, gambling licensees and key employee licenses. In addi- tion, TPPPS licenses are subject to Sections 12204 and 12218.11 for ineligibility for registration and licensure. These five sections are combined to provide a single section. Additionally, this

section is updated to be con- sistent with

definitions in

Section 12002.

ARTICLE 2. PROCEDURES FOR HEARINGS AND MEETINGS ON APPLICATIONS Amend

Section 12052. Commission Meetings; General Procedures; Scope; Rescheduling of Meeting. This

section provides information on how the Com- mission issues notices for the consideration of applica- tions. This

section is revised to reformat the form to bet- ter match other forms. Additionally, the form is renum- bered to CGCC−CH1−03 (New 05/20). Amend

Section 12056. Evidentiary Hearings. This

section provides direction and guidelines for the election of either an Administrative Procedures Act (APA) or GCA hearing. Subsection (

e) is added to this

section to provide clar- ity that an APA or GCA hearing is sufficient to meet the statutory hearing requirement listed in a B&P Code sec- tion 19914. B&P Code

section 19914, subdivisions (

a) and (b), provides that the Commission may revoke a work permit that was issued by a local authority.

ARTICLE 3. DESIGNATED AGENT Adopt

Section 12080. Requirements.

Section 12080 provides regulations regarding the ap- pointment of designated agents. A designated agent is a person who is authorized to assist an applicant or li- censee on a specified set of issues and may appear be- fore the Commission on behalf of an applicant or li- censee if so designated. Adopt

Section 12082. Standards of Representation.

Section 12082 provides the minimum standards and responsibilities of a designated agent while they remain appointed.

CHAPTER 2. LICENSES AND WORK PERMITS

ARTICLE 1.

DEFINITIONS AND GENERAL PROVISIONS Amend

Section 12100.

Definitions. This

section provides

definitions for use by this Chapter. The

definitions of this

chapter have been moved to the general

definitions of

Section 12002. Repeal

Section 12101. Forms. This

section provides for the incorporation of forms. For better clarity, the incorporation of each form has been placed in the

section where the form is mentioned; and, this

section is repealed. Adopt

Section 12102. General Provisions. This

section provides general provisions related to each license. Where these provisions have been moved from existing provisions, terms have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12200.1. Certificate. (Section 12104. TPPPS Certificate.)

Section 12200.1 is renumbered to

Section 12104 and renamed to TPPPS Certificate. This provision is further modified, with non−substantive changes and to make terms match those revised in

Section 12002. Amend

Section 12353. License Content; License Display and Presentation. (Section 12106. Badges.)

Section 12353 is renumbered to

Section 12106 and renamed Badges. This

section provides the content of the badge and how the holder of the badge must display, maintain, and return their badge. Currently, in addition to

Section 12353 [key employee license],

Section 12200.3 provides the badge requirements for TPPPS li- censees. The terms used in this

section have been updat- ed to be consistent with other changes to

definitions, as provided in

Section 12002. Work permit badges are added to these requirements. This proposal would also 861

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z require that a gambling licensee be issued and wear a badge while on duty in the gambling establishment. Adopt

Section 12108. Replacement of a Badge.

Section 12108 provides procedures for a licensee or a holder of a work permit to request a replacement badge. Currently, program specific provisions already provide for this function.

Section 12140 provides for replace- ment work permit badges,

Section 12200.5 provides for the replacement of TPPPS badges and subsection (

b) of

Section 12352 provides for the replacement for key em- ployee licenses. As badges are currently not provided to owners of a cardroom, there are no provisions for pro- viding a replacement badge. The terms used in this sec- tion have been updated to be consistent with other changes to

definitions, as provided in

Section 12002. Adopt

Section 12110. Change in Employment Status.

Section 12110 provides a process for an employee or owner to inform the Bureau of a change in employment status. Existing

Section 12130 [work permits] has been combined with

Section 12352 [key employee license] and expanded to provide a single consistent process. This

section provides the specifics of the process for no- tifying the Bureau of a change in employment status, in- cluding the submittal of a Notification of Employment Change, CGCC−CH2−02 (New 05/20) or Notification of Employee Separation, CGCC−CH2−03 (New 05/20), as specified. The amendments to this

section will expand portability to all employee licenses.

ARTICLE 2. INITIAL AND RENEWAL LICENSES AND WORK PERMITS Repeal

Section 12104. Term of Work Permit. Currently

Section 12104 provides that a Commission work permit is valid for two years, and that if a tempo- rary work permit had been issued, any issued Commis- sion work permit shall be considered to have been is- sued when the temporary work permit was issued. Repeal

Section 12105. Mandatory and Discretionary Grounds for Denial of a Work Permit.

Section 12015 provides grounds for mandatory and discretionary denials of a Commission work permit. This

section is repealed and incorporated into proposed Sections 12040, 12108, and 12118. Amend

Section 12342. Initial Gambling License Applications; Required Forms; Processing Times. (Section 12112. Initial License Applications; Required Forms.)

Section 12342 is renumbered to

Section 12112 and renamed Initial License Applications; Required Forms. The sections combined with

Section 12342 are

Section 12350 [key employee license], Sections 12202 and 12203 [TPPPS registration], and 12218.7 [TPPPS li- censes]. This

section provides the specifics of the appli- cation process including what is considered a complete application. This

section provides that an Application for Employee Category License, CGCC−CH2−04 (New 05/20) or Application for Owner Category Li- cense, CGCC−CH2−05 (New 05/20), along with any relevant supplemental or additional forms must be provided. Subsection (

a) provides the actual application forms:  Application for Employee Category License, CGCC−CH2−04 (New 05/20) requires that information be submitted related to each individual that is applying for a key employee license, Commission work permit, TPPPS supervisor license, TPPPS worker license.

This form represents a combination of BGC−APP−001 (Rev. 11/07) [various], BGC−021 (Rev. 07/17) [work permit], BGC−023 (Rev. 07/17) [work permit], BGC−031 (Rev. 04/13) [key employee], BGC−035 (Rev. 07/17) [interim key employee], BGC−434 (Rev. 04/13) [TPPPS supervisor, TPPPS player and TPPPS other employee] and BGC−435 (Rev. 04/13) [TPPPS supervisor, TPPPS player and TPPPS other employee].

The form requires information related to the applicant’s personal, financial, contractual, and legal history for when this form is used as a renewal application.  Application for Owner Category License, CGCC−CH2−05 (New 05/20) requires that information be submitted related to each individual or business that is applying for a gambling license or TPPPS owner license. This form represents a combination of BGC−APP−001 (Rev. 11/07) [various], BGC−030 (Rev. 4/13) [gambling license], BGC−433 (Rev. 04/13) [TPPPS owner] and BGC−435 (Rev. 04/13) [TPPPS owner].

The form requires information related to the applicant’s personal, financial, contractual, and legal history for when this form is used as a renewal application. Subsection (

b) provides that for the supplemental forms:  Business Entity: Supplemental Information, CGCC−CH2−06 (New 05/20) requires that information be submitted related to business entities that are also owners of a cardroom business license or TPPPS business license. This form represents a combination of BGC−APP−015B (Rev. 07/17) [gambling license], BGC−APP−015C (Rev. 07/17) [cardroom business license] and BGC−APP−034B (Rev. 07/17) [TPPPS license]. 862

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z The form requires information related to the applicant’s personal, financial, contractual, and legal history.  Individual Owner/Principal: Supplemental Information, CGCC−CH2−07(New 05/20) requires that information be submitted related to each natural person that is also an owner of a cardroom business license or TPPPS business license. This form represents a combination of BGC−APP−015A (Rev. 07/17) [gambling license] and BGC−APP−034A (Rev. 07/17) [TPPPS license].

The form requires information related to the applicant’s personal, financial, contractual, and legal history.  Key Employee or TPPPS Supervisor: Supplemental Information, CGCC−CH2−08 (New 05/20) requires that information be submitted related to an applicant for a key employee license or TPPPS supervisor license. This form represents a combination of BGC−APP−016A (Rev. 08/09) [key employee] and BGC−APP−033 (Rev. 07/17) [TPPPS supervisor].

The form requires information related to the applicant’s personal, financial, contractual, and legal history.  Trust: Supplemental Information, CGCC−CH2−09 (New 05/20) requires that information be submitted related to each trust that is also an owner of a cardroom business license or TPPPS business license. Currently both a cardroom and TPPPS utilize the Trust Supplemental Background Investigation Information, BGC−APP−143 (Rev. 07/17). This proposed form would replace BGC−APP−143 but maintains much of its content.

The form requires information related to the applicant’s personal, financial, contractual, and legal history.  Commission Work Permit or TPPPS Worker: Supplemental Information, CGCC−CH2−10 (New 05/20) requires that information be submitted related to an application for a work permit or TPPPS worker license. This form represents a combination of BGC−APP−032 (Rev. 07/17) [TPPPS Licensing] and BGC−436 (Rev. 07/17) [TPPPS Registration].

The form requires information related to the applicant’s personal, financial, contractual, and legal history.  Supplemental Information: Schedules, CGCC−CH2−11 (New 05/20) requires additional financial information from an applicant in conjunction with their specific supplemental form.  Spousal Information, CGCC−CH2−12 (New 05/20) is required in paragraph (7), renumbered from paragraph (5).

This form requires that when applying for a cardroom owner type license, an applicant and their spouse provide the specific relationship the spouse will have with the cardroom, including any potential rights through inheritance or community property. Existing regulations provide six forms, depending on the specific status being declared. As part of this process these six forms are being repealed and combined into the proposed form.

This form represents a combination of BGC−APP−009A (Rev. 07/17), BGC−APP−010 (Rev. 07/17), BGC−APP−011 (Rev. 11/07), BGC−APP−012 (Rev. 11/07), BGC−APP−013 (Rev. 11/07) and BGC−APP−014 (Rev. 11/07). Currently, the TPPPS licensing process does not in- clude a form consideration of spouses; however, on a case−by−case basis applicants have been allowed to submit that their spouse will not have a relationship with a TPPPS and therefore does not require licensure.

The proposed form has been drafted to allow for its use with a TPPPS owner type license.  Paragraphs (6) through (17), inclusive, are repealed.  Trust Supplemental Background Investigation Information, BGC−APP−143 has been moved to paragraph (4).  Declaration of Full Disclosure, BGC−APP−005 has been repealed.  Authorization to Release Information, BGC−APP−006 has been moved to subsection (c).  Applicant’s Declaration, Acknowledgment and Agreement (Community Property Interest), BGC−APP−011 has been combined with the Spousal Instructions form provided in paragraph (7).  Applicant’s Declaration, Acknowledgment and Agreement (Sole and Separate Property), BGC−APP−012 has been combined with the Spousal Instructions form provided in paragraph (7).  Spouse’s Declaration, Acknowledgment and Agreement (Community Property Interest), BGC−APP−013 has been combined with the Spousal Instructions form provided in paragraph (7).  Spouse’s Declaration, Acknowledgment and Agreement (Sole and Separate Property), BGC−APP−014 has been combined with the Spousal Instructions form provided in paragraph (7).  Appointment of Designated Agent, BGC−APP−008 has been moved to subsection (e). 863

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z  Key Employee Report, BGC−LIC−101 has been repealed.  Instructions to Applicant’s Spouse, BGC−APP−010 has been combined with the Spousal Instructions form provided in paragraph (7).  Notice to Applicants, BGC−APP−001 has been combined into the forms provided in subsection (a).  Request for Live Scan Service (BCII 8016) has been moved to subsection (d).  Paragraph (8), renumbered from paragraph (18), provides that the form Request for Copy of Personal Income Tax or Fiduciary Return, FTB−3516C1 (Rev. 02/09 side 1−PIT) is required.  Paragraph (9), renumbered from paragraph (19), provides that the form Request for Copy of Corporation, Exempt Organization, Partnership, or Limited Liability Company Return, FTB−3516C1 (Rev . 11/03 side 2−CORP) is required.  Existing subsection (

b) is repealed.  Paragraphs (1) and (2) are moved to

Section 12116.  Paragraph (3) is repealed. This provision provides that should the Bureau need longer than the prescribed period to review an application, it must inform the applicant. Subsection (

c) provides for the Authorization to Re- lease Information form:  Authorization to Release Information, CGCC−CH2−13 (New 05/20) requires that the applicant authorize the Bureau to request additional information directly from the source of the information. This is an existing form as BGC−APP−006 (Rev. 07/17) and most of the proposed changes are non−substantive changes. One change extends the release expiration from 12 months to 24 months. Subsection (

c) is repealed. This provision provides that the Bureau may exceed the proscribed timelines for specific reasons. Subsection (

d) provides for the background verifica- tion forms. If an applicant is a resident of California, then the standard Live Scan service is available. This program is currently used for all application types. This process is not available for out of State residents, and currently those applicants do not submit a Live Scan, though one is technically required. Instead, they submit an Applicant Fingerprint Card, FD−258.

The regula- tions have been modified to correctly reference the forms that are required.  Request for Live Scan Service, California Department of Justice From BCIA 8016 (Rev. 05/18) is an updated form maintained by another agency.  Applicant Fingerprint Card, FD−258 is a form maintained by the Federal Bureau of Investigation and need not be adopted formerly as part of this regulation process. Subsection (

e) provides for the Appointment of Des- ignated Agent form, which was previously discussed. Amend

Section 12345. Gambling License Renewals; Processing Times. (Section 12114. Renewal License Applications; Required Forms.)

Section 12345 is renumbered to

Section 12114 and renamed Renewal License Applications; Required Forms. This

section initially only applied to gambling licenses. However, it has been expanded and combined with other existing similar sections to provide a single consistent application process for all license types. The sections combined and incorporated into

Section 12345 are Sections 12351 [key employee license] and 12218.8 [TPPPS licenses]. This new

section provides the appli- cation process specifics including what is considered a complete application and the time frame they will be processed in. The terms used in this

section have been updated to be consistent with other changes to defini- tions, as provided in

Section 12002. Current subsection (

c) is moved to

Section 12116. Current subsection (

d) is repealed. This provision provided specific reasons the Bureau could exceed the required timelines. Current subsections (

e) and (

f) are moved to

Section 12116. Adopt

Section 12116. Processing Timelines for Applications.

Section 12116 provides for the timelines for applica- tion review. This

section is a combination of provisions from the many review processes; including, Sections 12342 [gambling license], 12203 [TPPPS registration], 12218.7 [TPPPS licensing] and

Section 12350 [key em- ployee license]. The terms used in this

section have been updated to be consistent with other changes to def- initions, as provided in

Section 12002. Adopt

Section 12118. Objection to Local Work Permits.

Section 12118 makes effective paragraphs (1) and (3) of subdivision (

c) of B&P Code

section 19912 and B&P Code

section 19914 by providing clarity on how objec- tions and revocations of local work permits will occur. Additionally, this

section provides a process for an ap- plicant to request a hearing before the Commission. This

section also provides the parameters of the hearing to consider either or both the Bureau’s objection and the revocation of a local work permit due to that objection. 864

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z Adopt

Section 12120. Findings of Suitability Associated with a Tribal Compact. This

section provides consistency with Tribal−State Compacts (Compacts) ratified by Government Code

section 12012.25 and subsequent sections providing for newer or amended Compacts. These Compacts require Tribal key employees, gaming resource supplies, and financial sources to secure licenses from Tribal Gaming Agencies and findings of suitability from the Commis- sion. These provisions delineate the standards the Com- mission will consider for the Tribal findings of suitabili- ty. Additionally, the exclusion of shareholders that own less than 10 percent of a corporation is consistent with B&P Code

section 19852 in that intermediary and hold- ing companies may be bypassed in the licensing process.

ARTICLE 3. TEMPORARY LICENSES AND WORK PERMITS Repeal

Section 12120. Temporary Work Permits. This

section provides provisions for the issuance of temporary work permits. This includes conditions placed on temporary work permits, how the temporary work permit is associated with the application for a Commission work permit, and how a temporary work permit is extended should it expire before the applica- tion has been considered by the Commission. In addition, Subsection (

f) provides that if an appli- cant withdraws their application, the temporary license is likewise rendered invalid. This provision has been in- corporated as subsection (

g) of

Section 12015. Adopt

Section 12122. General Provisions. This

section provides provisions that apply to all tem- porary licenses; including, how a temporary work per- mit is issued, how a temporary license is associated with a regular license and how a temporary license differs from a regular license. Amend

Section 12122. Criteria for the Issuance of Temporary Work Permit. (Section 12124. Temporary Employee Category Licenses.)

Section 12122 is renumbered to

Section 12124 and renamed Temporary Employee Category Licenses. The

section provides how a temporary license is issued, con- ditions of holding a temporary license, situations where a temporary license cannot be issued, and the require- ments for a temporary license to be issued. This

section currently applies to work permits; however, it has been expanded and combined with other existing similar sec- tions to provide a single consistent process. This

section is combined with

Section 12126 [work permit],

Section 12203.2 [TPPPS registration] and

Section 12349 [key employee license]. Additionally, these provisions are being expanded to include TPPPS supervisor licenses and TPPPS worker licenses. Repeal

Section 12124. Effect of Denial or Cancellation of Temporary Work Permit. The repeal of this

section is a non−substantive change as the provision is incorporated as subsection (

e) of Sec- tion 12122. Repeal

Section 12126. Processing Times for Temporary Work Permit. This

section provides timelines for the issuance of temporary work permits. This

section is incorporated as subsection (

b) of

Section 12124. Adopt

Section 12126. Temporary Owner Category License. This

section provides a regulatory structure for the is- suance of temporary licenses in conjunction with appli- cation requests for gambling business licenses should the applicant request it. The

section provides conditions of holding a temporary license, situations where a tem- porary license cannot be issued, and the requirements for a temporary license to be issued. Amend

Section 12128. Cancellation of Temporary Work Permit. (Section 12128. Cancellation or Conditioning of T emporary Licenses.)

Section 12128 is renamed Cancellation or Condition- ing of Temporary Licenses. This

section provides the process for cancelling or conditioning an already issued temporary license. This

section currently only applies to work permits; however, it has been expanded and combined with other existing similar sections to pro- vide a consistent process for all license types. The process for cancelling temporary employee licenses is a combination of

Section 12128 [work permit],

Section 12203.5 [TPPPS registration] and subsection (

e) of

Section 12354 [key employee license]. This change is non−substantive, with the necessity for the new defini- tion discussed in that section. Amend

Section 12201. Registration. (Section 12130. TPPPS Registration)

Section 12201 is renumbered to

Section 12130 and renamed TPPPS registration. Currently this

section provides the registration process for TPPPS applicants. This process, as provided in

Chapter 2.1, is much differ- ent than the licensing scheme for a cardroom and its em- ployees. The registration process was developed as a short term solution when the program was initially es- tablished. This allowed for TPPPS applicants to begin work while the background investigation was pending. This process provided a registration that was valid for either one or two years and included its own denial and renewal provisions. A registrant could remain in this process for any number of cycles until a license was issued. 865

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z With the consolidation of the licensing regulatory re- quirements, the registration process is being phased out and future TPPPS applicants will now request a tempo- rary license. However, as the process transforms, there may be registrations that expire in a timeline that does not allow them to be smoothly transitioned to the new li- censure and temporary licensure processes. For those applicants, a different transition process is necessary.

ARTICLE 4. INTERIM OWNER CATEGORY LICENSE Repeal

Section 12130. Change in Place of Employment — Work Permit Transfer.

Section 12130 provides a process for holders of a work permit to transfer the association of their work permit from one cardroom to another. Repeal

Section 12132. Processing Times for Application to Change Place of Employment.

Section 12132 provides the timelines with which an application for a change in place of employment for a work permittee is processed. This

section has been re- placed by

Section 12124, the necessity of which is dis- cussed with that section. Amend

Section 12349. Interim Licenses for Continued Operation Following Qualifying Events; Criteria; Processing Time; Conditions. (Section 12132.

Article

Definitions.)

Section 12349 is divided and renumbered to Sections 12132, 12134, 12136, 12138, and

Section 12349 initially only applied to gambling licenses; how- ever, it has been expanded to include TPPPS owner li- censes. The terms used in these divided sections have been updated to be consistent with other changes to def- initions, as provided in

Section 12002. After the separa- tion,

Section 12349 provides the

definitions unique to the interim license process. Adopt

Section 12134. General Provisions.

Section 12134 renumbers subsections (

a) and (g)−(

i) of

Section 12349. These provisions provide general controlling requirements to an interim gambling busi- ness license; such as the business may continue operat- ing with specific conditions, any new owner may sell their ownership interest, no interim or regular license is necessary, that an interim gambling business license does not prevent the application for a temporary license and how an interim gambling business license can- celed. Additionally, a new provision is proposed to clar- ify that the approval with conditions, cancellation or de- nial of an interim gambling business license is not eligi- ble for an evidentiary hearing. Adopt

Section 12136. Applications and Required Forms.

Section 12136 renumbers subsection (

c) of

Section 12349. This provision is non−substantively changed to make it consistent with other proposed changes. Addi- tionally, two new provisions are proposed allow for an interim gambling business license to be renewed and what happens when an interim gambling business li- cense expires without a regular license having been issued. Adopt

Section 12138. Criteria.

Section 12138 renumbers subsections (

d) and (

e) of

Section 12349. These provisions are amended to be consistent with other changes to the regulations such as amended terms and allowing TPPPS owners to apply for an interim gambling business license. Additionally, the review timeline is amended to provide clarity in how the total timeline is divided between Bureau and Com- mission review. Adopt

Section 12140. Conditions.

Section 12138 renumbers subsection (

f) of

Section 12349. These provisions are amended to be consistent with other changes to the regulations such as amended terms and allowing TPPPS owners to apply for an inter- im gambling business license. This

section provides au- tomatic conditions to interim gambling licenses.

ARTICLE 5. SURRENDER OR ABANDONMENT OF CARDROOM BUSINESS LICENSE Repeal

Section 12140. Replacement Work Permit Badges.

Section 12140 provided a process to replace a work permit badge. This process is being replaced by a gener- al process available to all license types in

Section 12108. Repeal

Section 12142. Processing Times for Application to Replace Work Permit Badge.

Section 12142 provided a process to replace a work permit badge. This process is being replaced by a gener- al process available to all license types in

Section 12108. Amend

Section 12347. State Gambling License; Surrender; Abandonment. (Section 12142. Cardroom Business License; Surrender; Abandonment.)

Section 12347 is renumbered to

Section 12142 and retitled “cardroom business license; Surrender; Aban- donment.” The terms used in this

section have been up- dated to be consistent with other changes to

definitions, as provided in

Section 12002. 866

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z Amend

Section 12348. State Gambling Licenses: Prior Surrender or Abandonment. (Section 12144. Cardroom Business License: Prior Surrender or Abandonment.)

Section 12348 is renumbered to

Section 12144 and retitled “cardroom business license; Prior Surrender or Abandonment.” The terms used in this

section have been updated to be consistent with other changes to def- initions, as provided in

Section 12002.

CHAPTER 2.1. THIRD−PARTY PROVIDERS OF PROPOSITION PLAYER SERVICES: REGISTRATION; LICENSING

ARTICLE 1.

DEFINITIONS AND GENERAL PROVISIONS Repeal

Section 12200.

Definitions.

Section 12200 provides

definitions for

Chapter 2.1. As part of the consolidation, these

definitions have been removed from this chapter; either being repealed or moved to another chapter. Those

definitions that are moved have conforming changes to reflect other pro- posed changes. Repeal

Section 12200.3. Badge.

Section 12200.3 provides the specifics of the badge that is required to be worn by every licensed or regis- tered individual. This

section is combined and merged with

Section 12353 into

Section 12106. Repeal

Section 12200.5. Replacement of Badge.

Section 12200.5 provides the specifics of replacing a badge. This

section is combined and merged into Sec- tion 12108. Repeal

Section 12200.6. Transfer or Reinstatement of Player Registration or License; Issuance of Additional Badge.

Section 12200.6 provides processes for changing em- ployment status. This process has been incorporated in- to

Section 12124, and made consistent with the other li- censing processes. Repeal

Section 12200.10C. Submission of Contract or Amendment to Commission.

Section 12200.10C provides that the Bureau must provide the Commission an opportunity to review a TPPPS contract or amendment to an existing contract. This

section is repealed. Repeal

Section 12200.14. Organization Chart and Employee Report.

Section 12200.14 requires the production and sub- mittal of charts that provide both the ownership struc- ture of the TPPPS business licensee and the organiza- tion of employees. The ownership information assisted the Bureau and Commission in determining that all proper individuals and entities were licensed while the organization of employees assisted in verifying that the proper annual fees were provided. Repeal

Section 12200.18. Revocation.

Section 12200.18 provides provisions that the Com- mission with specific grounds for which a license or registration may be revoked following the same proce- dures of a gambling establishment license. Many of the provisions have been moved to

Section 12560, which is a non−substantive change that consolidates disciplinary procedures.

ARTICLE 2. REGISTRATION Repeal

Section 12202. Application for Registration.

Section 12202 provides for the application process for requesting a TPPPS registration. This process is repealed. Repeal

Section 12203. Processing of Applications for Initial Registration.

Section 12203 provides for the application process- ing requirements for an initial TPPPS registration. This process is repealed. Repeal

Section 12203A. Processing of Applications for Renewal of Registration.

Section 12203A provides for the application process for requesting a renewal TPPPS registration. This process is repealed. Repeal

Section 12203.1. Temporary Player Registration.

Section 12203.1 provides for the application process for requesting a temporary TPPPS player registration. This process is repealed. Repeal

Section 12203.2. Temporary Player Registration: Application; Criteria.

Section 12203.2 provides for the application criteria for requesting a temporary TPPPS player registration. This process is repealed. Repeal

Section 12203.3. Processing Times for Temporary Player Registration.

Section 12203.3 provides for the application process- ing times for requesting a temporary TPPPS registra- tion. This process is repealed. Repeal

Section 12203.5. Cancellation of Temporary Registration.

Section 12203.5 provides conditions for the cancella- tion of a temporary TPPPS registration. This process is repealed. 867

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z Repeal

Section 12204. Ineligibility for Registration.

Section 12204 provides the ineligibility requirements for receiving a TPPPS registration. This process is repealed. Repeal

Section 12205. Cancellation of Regular Registration.

Section 12205 provides for the cancellation of a TPPPS registration. This process is repealed. Repeal

Section 12205.1. Transition to Licensing.

Section 12205.1 provides for transitioning a TPPPS registration to a TPPPS license. This process is repealed.

ARTICLE 3. LICENSING Repeal

Section 12218. Request to Convert Registration to License.

Section 12218 provides for converting a TPPPS reg- istration to a TPPPS license. This process is repealed. Repeal

Section 12218.1. Subsequent Registrants.

Section 12218.1 provides for the licensing of subse- quent TPPPS registrants after the primary owner has transitioned to a TPPPS license. This process is repealed. Repeal

Section 12218.7. Processing Times — Request to Convert Registration to License.

Section 12218.7 provides for the conversion of a TPPPS registration to a TPPPS license. This process is repealed. Repeal

Section 12218.8. License Renewals.

Section 12218.8 provides for renewals of a TPPPS li- cense. This process has been incorporated into

Section 12124 and made consistent with the other licensing processes. Repeal

Section 12218.9. Processing of Applications for Renewal License.

Section 12218.9 provides for renewals of a TPPPS li- cense. This process has been incorporated into

Section 12124 and made consistent with the other licensing processes. Repeal

Section 12218.11. Ineligibility for Licensing.

Section 12218.11 provides for ineligibility for a TPPPS license. These provisions have been incorporat- ed into

Section 12040 and made consistent with the oth- er licensing processes. Repeal

Section 12218.13. Term of License.

Section 12218.13 provides that a license is issued for a two year period. This provision has been incorporated into

Section 12102 and made consistent with the other licensing processes.

CHAPTER 2.2. GAMBLING BUSINESSES: REGISTRATION; LICENSING

ARTICLE 1.

DEFINITIONS AND GENERAL PROVISIONS This

Chapter is proposed to be repealed. Prior to the adoption of B&P Code

section 19984, individuals, or an organization of individuals, provided proposition play- er services to cardroom business licenses. With the adoption of B&P Code

section 19984, the Legislature mandated that the Commission require the licensure of any person or entity that provided proposition player services, and the approval of their contracts with the cardroom business licensee. This requirement was re- flected in the approval of

Chapter 2.1. When the origi- nal regulations were contemplated, a need was seen to allow for and regulate entities that provided proposition player services for a cardroom business licensee with- out a contract, which are identified as gambling busi- nesses pursuant to this chapter. This

Chapter provides these requirements. Due to the nature of the marketplace, the original pre- sumed need to allow for and regulate gambling busi- nesses has proven to be incorrect. At the sunset of the program, only a single gambling business is either reg- istered or licensed. This limited participation does not provide sufficient participation for the Bureau and Commission maintain active programs and is therefore proposed to be repealed. Repeal

Section 12220.

Definitions. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.1. Certificate. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.3. Badge. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.5. Replacement of Badge. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.6. Transfer or Reinstatement of Player Registration or License; Issuance of Additional Badge. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.14. Organization Chart and Employee Report. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. 868

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z Repeal

Section 12220.15. Transfers and Sales. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.17. Emergency Orders. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.18. Revocation. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.20. Annual Fee. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12220.20a. Annual Fee as Applied to those Registered or Licensed Under

Chapter 2.1. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed.

ARTICLE 2. REGISTRATION Repeal

Section 12221. Registration. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12222. Application for Registration. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12223. Processing of Applications for Initial and Renewal Registration. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12224. Ineligibility for Registration. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12225. Cancellation of Registration. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12225.1. Transition to Licensing. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed.

ARTICLE 3. LICENSING Repeal

Section 12233. Registration to License. Request to Convert Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12235. Processing Times — Request to Convert Registration to License. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12236. Ineligibility for Licensing. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12237. Term of License. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12238. License Renewals. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed. Repeal

Section 12239. Processing of Applications for Renewal License. Consistent with the repeal of

Chapter 2.2, this provi- sion has been repealed.

CHAPTER 3. CONDITIONS OF OPERATION FOR TPPPS BUSINESSES

ARTICLE 1. GENERAL PROVISIONS Amend

Section 12250.

Definitions.

Section 12250 provides

definitions for the

chapter that specifies conditions of operation for TPPPS busi- ness licensees. This

section is amended to reflect other changes to defined terms and the repeal of

Chapter 2.2 related to gambling businesses. One definition is moved from

Section 12200 and other provisions have been renumbered accordingly. Amend

Section 12200.20. Annual Fee. (Section 12252. TPPPS Annual Fee.)

Section 12200.20 is renumbered to

Section 12252 and renamed TPPPS Annual Fee. This

section provides for the annual fee that each TPPPS business licensee is required to pay to the Bureau every year. While main- taining the existing fee structure, this

section has been modified to remove unnecessary language and to pro- vide clarity. Finally, this

section has been modified to be consistent with other proposed changes. Amend

Section 12200.17. Emergency Orders. (Section 12254. Emergency Orders.) This

section is renumbered to

Section 12254. This

section provides that registrants and licensees shall be subject to emergency orders from B&P Code

section 19931. This

section is revised to be consistent with oth- er proposed changes. Amend

Section 12200.15. Transfers and Sales. (Section 12256. Transfers and Sales.) This

section is renumbered to

Section 12256. This provides guidelines and requirements for the transfer or sale of ownership interest in a TPPPS business license. This

section is revised to include a provision being moved from

Section 12200.14 [new subsection (d)]. Additionally, this

section is amended to reflect other changes made to the defined terms. 869

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z

ARTICLE 2. PLAYING BOOK Amend

Section 12260. General Provisions.

Section 12260 provides general provisions and re- quirements related to the operation of a playing book. This

section is amended to reflect other changes to de- fined terms and the repeal of

Chapter 2.2 related to gam- bling businesses. Amend

Section 12261. Review of Playing Book Forms.

Section 12261 provides the review process for play- ing book approval. This

section is amended to reflect other changes to defined terms and the repeal of

Chapter 2.2 related to gambling businesses. Amend

Section 12263. Electronic Playing Book Database Requirements.

Section 12263 provides requirements for electronic playing book databases. This

section is amended to re- flect other changes to defined terms and the repeal of

Chapter 2.2 related to gambling businesses. Amend

Section 12264. Review and Certification of Electronic Playing Book Systems.

Section 12264 provides the application and review process for Electronic Playing Book Systems. The terms used in this

section and the attached form have been updated to be consistent with other changes to def- initions, as provided in

Section 12002. Additionally, the form has been renumbered to CGCC−CH3−01 (New. 05/20).

ARTICLE 3. TPPPS CONTRACTS Amend

Section 12200.7. Proposition Player Contract Criteria. (Section 12270. TPPPS Contract Criteria.) This

section is renumbered to

Section 12270 and re- named to TPPPS Contract Criteria. This

section pro- vides for the contract criteria between a cardroom busi- ness licensee and a TPPPS business licensee to allow for the provision of third−party services. This

section is amended to reflect other changes to defined terms. Amend

Section 12200.9. Review and Approval of Proposition Player Contracts. (Section 12272. Review and Approval of TPPPS Contracts.) This

section is renumbered to

Section 12272 and is renamed to Review and Approval of TPPPS Contracts. This

section provides for the review and approval process conducted by the Bureau. This

section is amended to reflect other changes to defined terms. Ad- ditionally, the form has been renumbered to CGCC− CH3−02 (New. 05/20). Amend

Section 12200.10A. Expedited Review and Approval of Proposition Player Contracts. (Section 12274. Expedited Review and Approval of TPPPS Contracts.) This

section is renumbered to

Section 12274 and re- named to Expedited Review and Approval of TPPPS Contracts. This

section provides for the expedited re- view and approval process conducted by the Bureau. This

section is amended to reflect other changes to de- fined terms. Amend

Section 12200.10B. Review and Approval of Amendments to Proposition Player Contracts. (Section 12276. Review and Approval of Amendments to TPPPS Contracts.) This

section is renumbered to

Section 12276 and is renamed to Review and Approval of Amendments to TPPPS Contracts. This

section provides for the review and approval process conducted by the Bureau to amend an already approved contract. This

section is amended to reflect other changes to defined terms. Amend

Section 12200.11. Extension of Proposition Player Contracts. (Section 12278. Extension of TPPPS Contracts.) This

section is renumbered to

Section 12278 and is renamed to Extension of TPPPS Contracts. This

section provides that a contract may be extended. This

section is amended to reflect other changes to defined terms.

ARTICLE 4. SECURITY AND USE OF PLAYER’S BANKS Amend

Section 12287. Loss Notification.

Section 12287 provides requirements for written pro- cedures related to notifying the Bureau as specified. This

section is amended to reflect the repeal of

Chapter 2.2 related to gambling businesses.

ARTICLE 5. COMPLIANCE Amend

Section 12290. Compliance.

Section 12290 provides requirements a TPPPS busi- ness licensee and its employees must follow. This sec- tion is amended to reflect other changes to defined terms and the repeal of

Chapter 2.2 related to gambling businesses.

CHAPTER 4. GAMBLING EQUIPMENT MANUFACTURERS OR DISTRIBUTORS Amend

Section 12301. Registration of Manufacturers or Distributors. This

section is revised to be consistent with other pro- posed changes. 870

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z Amend

Section 12309. Forms. (Section 12309. Forms; Fees.) This

section is renamed Forms; Fees. This

section is revised to be consistent with the repeal 12008. As previ- ously discussed, the fees of

Section 12008(

f) have been moved to this section. In addition, the forms are moved to the appendix instead of incorporated by reference. This is done to be consistent with other chapters. The forms are not otherwise modified.

CHAPTER 5. ACCOUNTING AND TRANSACTION APPROV ALS

ARTICLE 1. ACCOUNTING AND FINANCIAL REPORTING Amend

Section 12311.

Definitions. This

section provides the

definitions for use in Chap- ter 5. Included in these

definitions is the creation of sub− groups of licenses by reported gross revenue. These

definitions are revised from referring to licensees to specifically addressing cardroom business licensees and TPPPS business licensees. The intent of the regula- tion is to provide a requirement to the operators but not to all licensees (which also includes Key Employees, TPPPS supervisor, TPPPS players, and TPPPS other employees). This amendment of the terms clarifies that the accounting requirements apply to only the operators and not other licensees. Amend

Section 12312. Record Retention and Maintenance; General Provisions. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12313. Financial Statements and Reporting Requirements. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12315. Records and Reports of Monetary Instrument Transactions for Gambling Enterprises. (Section 12315. Records and Reports of Monetary Instrument Transactions for Cardroom Business Licensees.) This

section is renamed to Records and Reports of Monetary Instrument Transactions for Cardroom Busi- ness Licensees. The terms used in this

section have been updated to be consistent with other changes to defini- tions, as provided in

Section 12002. Amend

Section 12316. Unclaimed or Abandoned Property. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002.

CHAPTER 6. GAMBLING LICENSES AND APPROV ALS FOR GAMBLING ESTABLISHMENTS AND OWNERS; PORTABLE PERSONAL KEY EMPLOYEE LICENSES

ARTICLE 1.

DEFINITIONS AND GENERAL PROVISIONS This

Chapter is proposed to be repealed. Currently this

chapter provides licensing processes for the owners of cardrooms and key employees. With the merger of all licensing processes into

Chapter 2, the provisions of this

chapter are no longer needed and are either moved, repealed, or incorporated into other provisions. Repeal

Section 12335.

Definitions.

Section 12335 provides two

definitions for

Chapter 6. As part of the consolidation of licensing processes, this

chapter has been repealed.

ARTICLE 2. GAMBLING LICENSES Repeal

Section 12340. Gambling Licenses.

Section 12340 provides general conditions of a gam- bling license. As part of the consolidation of licensing processes this

chapter has been repealed, with the ex- ception of subsection (

b) which has been moved to Sec- tion 12102. Repeal

Section 12341. Fee for Initial State Gambling License.

Section 12341 provides a fee that is required for ini- tial gambling licenses. This fee is moved to the Applica- tion for Gambling Business License form so that this

section can be repealed as part of the general consolida- tion of licensing processes. Repeal

Section 12346. Mandatory and Discretionary Grounds for Denial of Application for a Gambling License.

Section 12346 provides for a completion of mandato- ry and discretionary grounds for denial. As part of the consolidation of licensing procedures, this

section has been combined into

Section 12040 with conforming changes to be consistent with other proposed changes.

ARTICLE 3. PORTABLE PERSONAL KEY EMPLOYEE LICENSE Repeal

Section 12350. Initial Licenses; Required Forms; Processing Times.

Section 12350 provides the licensure process for re- questing an initial key employee license. This process 871

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z has been incorporated into

Section 12120 and made consistent with the other licensing processes. Repeal

Section 12351. License Renewals; Required Forms; Processing Times.

Section 12351 provides for the licensure process for requesting a renewal key employee license. This process has been incorporated into

Section 12124 and made consistent with the other licensing processes. Repeal

Section 12352. Employment Status Notification; Replacement License; Required Forms; Processing Times.

Section 12352 provides processes for changing em- ployment status or requesting a new badge. This process has been incorporated into Sections 12108 and 12124, and made consistent with the other licensing processes. Repeal

Section 12354. Interim Key Employee Licenses; Processing Times.

Section 12354 provides for the licensure process for requesting an interim key employee license (renamed temporary key employee license). This process has been incorporated into Sections 12122 and 12126, and made consistent with the other licensing processes. Repeal

Section 12355. Mandatory and Discretionary Grounds for Denial of Application for a Key Employee License.

Section 12355 provides for mandatory and discre- tionary grounds for denial. As part of the consolidation of licensing procedures, this

section has been combined into

Section 12040 with conforming changes to be con- sistent with other proposed changes.

CHAPTER 7. CONDITIONS OF OPERATION FOR GAMBLING ESTABLISHMENTS

ARTICLE 1. GENERAL PROVISIONS Amend

Section 12360.

Chapter

Definitions.

Section 12360 provides

definitions to terms only used in

Chapter 7. As explained in the descriptive text of

Section 12002, the definition of gaming activity is be- ing moved and the remaining references renumbered accordingly. Additionally, the unreferenced text is re− designated subsection (

a) with the last sentence being designated subsection (

b) and all

definitions renum- bered to paragraphs under subsection (b). Amend

Section 12362. Statewide Involuntary Exclusion List.

Section 12362 provides a process whereby individu- als can be reported for inclusion on the statewide invol- untary exclusion list. The terms used in this

section and attached form [CGCC−CH7−01 (New 05/20)] have been updated to be consistent with other changes to def- initions, as provided in

Section 12002. Amend

Section 12364. Relocation of Gambling Establishment.

Section 12364 provides a process whereby a card- room can get approval to change physical locations. The terms used in this

section and attached form [CGCC−CH7−02 (New 05/20)] have been updated to be consistent with other changes to

definitions, as pro- vided in

Section 12002. Amend

Section 12357. Annual Fee. (Section 12368. Cardroom Business License Annual Fee)

Section 12357 is renumbered to

Section 12368 and renamed to Cardroom Business License Annual Fee. This

section provides for the annual fee that must be paid by a cardroom every year, including a new install- ment payment process This

section and associated form [CGCC−CH7−03 (New 05/20)] provide for the pay- ment of the annual fee required by B&P Code

section 19951, subdivision (b), paragraph (2), subparagraph (B). The terms used in this

section and attached form have been updated to be consistent with other changes to

definitions, as provided in

Section 12002. Amend

Section 12220.23. Exclusion. (Section 12369. Prohibited Player−Dealer Participation; Exclusion.)

Section 12220.23 is renumbered to

Section 12369 and renamed Prohibited Player−Dealer Participation. This

section provides that a cardroom business licensee is required to notify the Bureau of any unlicensed or registered gambling businesses operating within the gambling establishment. This provision is revised to be consistent with other regulatory changes; specifically, the repeal of gambling businesses and new

Section 12570.

ARTICLE 2. EMERGENCY PREPAREDNESS, SECURITY AND SURVEILLANCE PLANS Amend

Section 12370. Emergency Planning and Preparedness. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12372. Security and Surveillance Plan. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. 872

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z

ARTICLE 3. MINIMUM INTERNAL CONTROL STANDARDS (MICS) FOR CARDROOM BUSINESS LICENSEES Amend

Section 12380. Minimum Internal Control Standards; General Terms, Conditions,

Definitions. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12381. Policies and Procedures. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12384. Drop and Drop Collection. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12385. Count; Count Room Functions. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12386. Cage Operation and Functions. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12387. Security and use of Floor Banks; Security of Gambling Equipment and Confidential Documents. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12388. Extension of Credit, Check Cashing, and Automatic Teller Machines (ATMS). The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12391. Gambling Floor Operation. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12392. House Rules. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12395. Security. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision. Amend

Section 12396. Surveillance. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. This

section has been revised to re- peal an unnecessary sunrise provision.

ARTICLE 9. PROGRAM FOR RESPONSIBLE GAMBLING Amend

Section 12460.

Article

Definitions. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12461. Posting Referral Information. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12462. Training Requirements. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12463. Self−Restriction Program. The terms used in this

section and the attached form [CGCC−CH7−04 (New 05/20)] have been updated to be consistent with other changes to

definitions, as pro- vided in

Section 12002. The form has been renumbered to match the new form number scheme. Amend

Section 12464. Self−Exclusion Program. The terms used in this

section and the attached form [CGCC−CH7−05 (New 05/20)] have been updated to be consistent with other changes to

definitions, as pro- vided in

Section 12002. The form has been renumbered to match the new form number scheme. Amend

Section 12465. Removal from the List of Self−Excluded Persons. The terms used in this

section and the attached form [CGCC−CH7−06 (New 05/20)] have been updated to be consistent with other changes to

definitions, as pro- vided in

Section 12002. The form has been renumbered to match the new form number scheme. Amend

Section 12466. Responsible Gambling Program Review. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. 873

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z

ARTICLE 10. GAMING TABLES Amend

Section 12358. Request for Additional Temporary Tables for Tournaments or Special Events. (Section 12470. Request for Additional Temporary Tables for Tournaments or Special Events.)

Section 12358 is renumbered to

Section 12470. This

section and the associated form provide for the tempo- rary issuance of tables for special events and the associ- ated fees. The terms used in this

section and the attached form have been updated to be consistent with other changes to

definitions, as provided in

Section 12002. These changes are non−substantive, with the necessity for the new

definitions discussed in that section. The new form, Cardroom Business License: Gaming Tables, CGCC−CH7−07 (New 05/20), is a combination of forms BGC−024 (Rev. 04/13) [permanent tables] and BGC−027 (Rev. 07/17) [temporary tables]. This new form does not request any additional information that is not currently required on those two forms. The new form adds space for a cardroom to request a reduction of tables. Currently, the Commission has a policy that al- lows for a request for reduction in permanent tables. Amend

Section 12359. Request for Additional Permanent Tables. (Section 12472. Request for Additional Permanent Tables.) The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Adopt

Section 12474. Reduction in Permanent Tables

Section 12474 provides for a method through which a cardroom business licensee is able to reduce its number of permanent tables, how the application process works, and how it interacts with other requirements of the cardroom business licensee. This process currently exists and is handled on a case−by−case basis. Formal- izing the process provides for clarity and consistency amongst all licensees. The terms used in this

section are updated to be consistent with other changes to defini- tions, as provided in

Section 12002.

CHAPTER 8. BINGO

ARTICLE 2. MANUFACTURERS, DISTRIBUTORS, AND VENDORS OF BINGO EQUIPMENT, DEVICES, SUPPLIES, AND SERVICES Amend

Section 12492. Interim Licenses; Initial and Renewal; Conditions. This

section is revised to update the form used to re- quest live scan service, as previously discussed.

ARTICLE 10. REMOTE CALLER BINGO INTERIM LICENSES AND INTERIM WORK PERMITS Amend

Section 12500. Interim Licenses; Initial and Renewal; Conditions. This

section is revised to update the form used to re- quest live scan service, as previously discussed. This change is non−substantive with no regulatory effect. Amend

Section 12503. Interim Work Permits; Initial and Renewal; Conditions. This

section is revised to update the form used to re- quest live scan service, as previously discussed.

CHAPTER 10. DISCIPLINE, HEARINGS, AND DECISIONS Amend

Section 12550. Purpose and Scope. This

section is revised to be consistent with other pro- posed changes. Amend

Section 12554. Formal Hearing Process. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. The

Summary Chart of Disci- plinary Guidelines, form CGCC−12554 is being repealed. Amend

Section 12556. Factors in Mitigation or Aggravation of Penalty. This

section is revised to be consistent with other pro- posed changes. Many of the changes are to be consistent with the removal of

Chapter 2.2. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provided in

Section 12002.  Subsection (

l) provides that a violation by an employee of a TPPPS business licensee may be used as a mitigating or aggravating factor when considering the impact of any penalty. This provision is revised to include cardroom business licenses, in addition to TPPPS business licensees, and to include independent contractors in addition to employees. These revisions make the standards 874

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z applied to TPPPS business licensees and cardroom business licenses consistent with the existing standards applied to gambling businesses [existing subsection (n)]. Amend

Section 12558. Disciplinary Guidelines for Holders of Work Permits. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Amend

Section 12560. Disciplinary Guidelines for Third−Party Pr oviders of Proposition Player Services Licensees or Registrants. (Section 12560. Disciplinary Guidelines for Third−Party Proposition Player Services Licensees.) This

section is renamed Disciplinary Guidelines for Third−Party Proposition Player Services Licensees. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. Consistent with the repeal of Sec- tion 12200.18 and 12220.18 those provisions referenc- ing those sections have been updated to provide the ac- tual guideline. Additionally, this

section uses the term gambling es- tablishment to refer to a licensed entity. The gambling establishment is the location where the controlled game is conducted and is not an entity that is able to act in any way. In these instances, the references to the gambling establishment acting in any way have been corrected to cardroom business licensee. Repeal

Section 12562. Disciplinary Guidelines for Gambling Business Licensees Or Registrants. This

section provides for disciplinary guidelines for licensees or registrants associated with a gambling business. As discussed in

Chapter 2.2, the program as- sociated with registering and licensing gambling busi- nesses is repealed; and, therefore the associated disci- plinary guidelines are unnecessary and also being repealed. Amend

Section 12564. Disciplinary Guidelines for Manufacturers or Distributors. This

section is revised to be consistent with other pro- posed changes. Amend

Section 12566. Disciplinary Guidelines for Gambling Establishments. (Section 12566. Disciplinary Guidelines for Cardroom Owner Type Licenses.)

Section 12566 is renamed to Disciplinary Guidelines for Cardroom Owner Type Licenses. The terms used in this

section have been updated to be consistent with oth- er changes to

definitions, as provided in

Section 12002. Amend

Section 12568. Disciplinary Guidelines for Holders of Licenses, Findings of Suitability, or Approvals. The terms used in this

section have been updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002.

CHAPTER 11. CONFLICTS−OF−INTEREST Appendix B The terms used in this

section are being updated to be consistent with other changes to

definitions, as provid- ed in

Section 12002. CONSISTENCY OR COMPATIBILITY WITH EXISTING STATE REGULATIONS The Commission has evaluated this regulatory action and determined that the proposed regulations are nei- ther inconsistent nor incompatible with any other exist- ing state regulations. The Commission is vested with jurisdiction and su- pervision over gambling establishments and over all persons or things having to do with the operations of gambling establishments in California. The scope and content of the Commission’s regulations is generally set forth in

section 19841. While the Bureau [Department of Justice] has also been granted some authority to adopt regulations (section 19826), that authority is lim- ited to the adoption of regulations reasonably related to its specified duties and responsibilities. These proposed regulations are not inconsistent or incompatible with any Bureau regulation (Title 11, CCR, Division 3), nor do they fall within the Bureau’s authority to adopt regulations. Currently, the Bureau’s regulation in Title 11, CCR,

Section 2010, subsection (e), provides the definition of designated agent; however, the Commission’s regula- tions do not provide a definition for designated agent. Notwithstanding, the term designated agent is used in the Commission’s regulations, with an understanding that the definition was consistent with the Bureau’s def- inition. Further review has determined that the Bureau’s definition is inconsistent with the intent of the Commis- sion’s usage of the term and the proposed definition is necessary to provide clarification.

The Bureau’s definition limits a designated agent to representing an owner of a gambling establishment or primary owner of a TPPPS. In the Commission’s regu- lations, designated agent is intended to reference a per- son appointed to represent any applicant or licensee. Should the Commission actually use the Bureau’s defi- nition, any applicant or licensee besides the owner of a 875

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z cardroom or TPPPS would be unable to benefit from some Commission provisions, such as

Section 12006 (which allows notices to be sent to a designated agent). This limitation is counter to the intent of the Commis- sion’s regulations. While this proposed definition does create a different standard than is currently in the Bu- reau’s regulations, this definition would include every person who would be considered a designated agent un- der Bureau regulations, and more importantly, is con- sistent with the practices of both the Commission and the Bureau. COMPARABLE FEDERAL LAW There are no existing federal regulations or statutes comparable to the proposed regulations.

FISCAL IMPACT ESTIMATES F ISCAL IMPACT ON PUBLIC AGENCIES INCLUDING COSTS OR SAV I N G S TO STATE AGENCIES OR COSTS/SAV I N G S IN FEDERAL FUNDING TO THE STATE: There would be no fiscal impact on the Commission or to any state agencies, including costs or savings, or costs/savings in Federal funding. While the Bureau will collect some additional fees, any associated work will be minimal and absorbable with current staffing. N ON−DISCRETIONARY COST OR SAV I N G S IMPOSED UPON LOCAL AGENCIES: None. MANDATE IMPOSED ON ANY LOCAL AGENCY OR SCHOOL DISTRICT FOR WHICH

PART 7 (COMMENCING WITH

SECTION 17500) OF DIVISION 4 OF THE GOVERN- MENT CODE REQUIRES REIMBURSEMENT: None. COST TO ANY LOCAL AGENCY OR SCHOOL DISTRICT FOR WHICH

PART 7 (COMMENCING WITH

SECTION 17500) OF DIVISION 4 OF THE GOVERNMENT CODE RE- QUIRES REIMBURSEMENT: None. EFFECT ON HOUSING COSTS: None. IMPACT ON BUSINESS: The Commission has made a determination that the proposed regulatory action would have no significant statewide adverse economic impact directly affecting business, including the ability of California businesses to compete with businesses in other states.

This deter- mination is based on the following facts or evidence/ documents/testimony: While this regulation does create some new require- ments and costs to cardroom and TPPPS businesses, such as the requirement that owners and employees ap- plying for a renewal license submit for fingerprint scan- ning. The new costs are not substantial and cut across the entire cardroom and TPPPS industry. This regula- tion will reduce the number of applications required, re- ducing some costs for cardroom and TPPPS businesses.

Additionally, the repeal of the current gambling busi- ness licensing structure will only impact a single busi- ness, which is also operating as a TPPPS. The specific estimated impact is as follows:

Section 12005. Prohibited Player−Dealer Participation. The proposed action includes the repeal of

Chapter 2.2 of the Commission’s regulations. This

chapter pro- vides for a licensing structure for gambling businesses, which are businesses that hire employees to act as the player−dealer in controlled games when the business has no contract or other relationship with the cardroom. Alongside the repeal of

Chapter 2.2, proposed

Section 12005 would prohibit the hiring of employees or con- tractors for participating as the player−dealer without a TPPPS contract. Due to this prohibition, the existing gambling businesses will be unable to operate without obtaining cardroom contracts and becoming a TPPPS business. Since 2014, there has only been one gambling busi- ness licensed or registered with the Commission. Uti- lizing information provided by this single gambling business over an average of the last four years, the Com- mission estimates the impact to the business would be an average of $206,603 in reduced income.

Additional- ly, the business will average a savings of $ 12,666 in badge fees to the Commission that will no longer be required.

Section 12080. Requirements. Existing regulations limit a designated agent to repre- senting an owner of a cardroom, TPPPS, or gambling business. The proposed regulation would expand the use of a designated agent to all license types. While the use of a designated agent would come with costs, the use of a designated agent is not required and is therefore not a cost imposed by these regulations.

Section 12102. General Provisions. Existing regulations have required that all employees of a cardroom be licensed as either a key employee or work permitee, but are ambiguous about the nature of employees employed by another company that are uti- lized by the cardroom through a contract. The proposed regulations would explicitly require these contract em- ployees and their supervisors be equivalently licensed or work permitted to those employees acting in the simi- lar capacities. The Commission conducted a survey of cardrooms to determine if any contracted employees would require licensure.

Of the 17 cardrooms for whom the Commission is responsible for issuing work per- mits, two responded, reporting the use of zero contract employees. Additionally, of the cardrooms for whom the Commission does not issue work permits, three in- dicated the use of contract employees. Of those three, zero indicated that the contract employees reported to 876

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z someone who would now be required to be licensed. Therefore, the Commission anticipates that this pro- posed regulation will have no fiscal impact.

Section 12106. Badges Current regulations do not require an owner of a card- room to wear a badge. Under this proposed action, own- ers would be required to wear a badge in certain situa- tions. Owners would therefore have the option of re- questing a badge as part of their application for licen- sure. Under the proposed regulations those who work in a cardroom would be required to have a badge. The fee for a badge is $25. The Commission conducted a survey of cardrooms to determine the impact. Of the 48 re- sponses, nine were natural person cardroom owners.

Of these nine respondents, six indicated that the proposed regulations would require them to request a badge. Based on this ratio, and the average 135 licensed natural person cardroom owner applications received each year, the Commission estimates that 90 additional indi- viduals would be required to request a badge at a total annual cost of $2,250. Current regulations do not require a badge holder to return a badge that has expired, except for key employ- ee licenses, which must only return their badge if re- quested to do so.

The proposed regulations would re- quire that all badges be returned within 30 days of expir- ing or otherwise becoming invalid. Using historical Commission workload, the Commission estimates that approximately 4,400 badges are issued in a year. It is reasonable to assume that badges are returned at a simi- lar rate either due to individuals leaving their jobs or due to the licenses expiring. While the Commission does expect to see a slight decrease due to the new portability of Commission work permits and TPPPS employee li- censes, this value is hard to quantify.

When the Com- mission issues badges, these badges are sent by mail and require $.50 in postage and it is reasonable to as- sume a similar cost on the badge holders when returning the badge. This would result in a total annual cost of $2,200.

Section 12110. Change in Employment Status. The additional cost comes from the new requirement for an owner to submit the form CGCC−CH2−03 (New 05/20) when an employee category licensee ceases to be employed by the cardroom or TPPPS. The calcula- tions used in estimating these savings were determined from a survey of applicants. Of the 48 applicants who submitted information, eight respondents each provid- ed the number of employees who separated in 2019 and the estimated cost to complete the required forms for those who separated in 2019.

This created a cost per ap- plication amount, which averaged $198 across the eight cardrooms. Using the historical information of the Commission, a five−year average total employee sepa- ration value 2,031 employees was determined. Com- paring the average industry wide separation value of 2,031 employees to the average per−form cost of $198 would result in an annual cost of $402,138.

Section 12200.14. Organization Chart and Employee Report Currently third−party providers are required to sub- mit an organizational chart with their initial application and each renewal of their registration. The repeal of this

section removes that requirement. The Commission conducted a survey of applications. Of the 48 applicants who submitted information, three provided information related to the costs of submitting this report. An average of those indicated costs provides an average cost of $100 to prepare and submit the report. Based upon his- torical submittal of applications, the Commission esti- mates that, on average, 19 applications are submitted to the Commission each year. This would result in an an- nual savings of $1,900.

Section 12342. Initial Gambling License Applications; Required Forms; Processing Times. (Section 12112. Initial License Applications; Required Forms.) Existing regulations require a person applying for a second license to submit a separate and distinct applica- tion. This means that if someone wishes to apply to own two different cardrooms, that person would be required to submit two complete applications. The proposed reg- ulations would provide that a person applying for a sec- ond license does not need to provide duplicate informa- tion, where it was already provided on a previous application.

The Bureau has indicated that there will be additional cost to applicants who apply for a second license as this change would result in the Bureau having the additional work of comparing the new application to all prior ap- plications. The Bureau estimates that 198 employee ap- plications per year would require an additional three hours of work. Additionally, the Bureau estimates that 40 owner applications per year would require an addi- tional five hours of work. The Bureau classifies the identified work as chargeable to an applicant’s back- ground deposit at a rate of $76 per hour.

This would re- sult in an annual cost of $60,334.

Section 12345. Gambling License Renewals; Processing Times. (Section 12114. Renewal License Applications; Required Forms.) Existing regulations only require an applicant to sub- mit a Live Scan form with an initial application. The proposed regulations would require a Live Scan to be submitted with a renewal application. The Commission conducted a survey of applicants. Of the 48 applicants who submitted cost information, 31 provided informa- tion related to their Live Scan operators, including costs. The average of those indicated live scan costs is 877

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z $63. Based upon historical submittal of renewal appli- cations, the Commission estimates that on average of 3,449 renewal applications are submitted to the Com- mission each year. This would result in an annual cost of $217,256.

Section 12126. Temporary Owner Category License. Existing regulations do not provide owners of card- rooms the opportunity to apply for temporary licenses. The proposed regulations would allow for such an ap- plication. This would provide a prospective owner the opportunity to obtain a temporary license, which could result in an increase in some costs or income to the ap- plicant and the person from whom they have purchased ownership. The request for a temporary license is op- tional and therefore any costs or income would not be required due to the proposed regulation.

Article 4. Interim Owner Category License Existing regulations provide that cardrooms, which would otherwise be required to close due to a specified event, to apply for an interim license to allow the busi- ness to remain open. The proposed regulations would expand this process to TPPPS businesses. This proposal would provide an undefined savings to the business. Rather than ceasing operations, the business would in- stead be allowed to remain in operation, paying staff, etc.

The interim license application process does not in- clude any additional fees, though it is possible the Bu- reau may require additional background deposits under its own authority. However, as the specifics and benefits received by the business from this process are unique in every situation, the Commission is not able to estimate the savings associated with this proposal. C OST IMPACT ON REPRESENTATIVE PRIV ATE PERSON OR BUSINESS: The Commission has determined that the proposed regulatory action will have an impact on a representa- tive private person or business in the Impact on Busi- ness section.

EFFECT ON SMALL BUSINESS: The Commission has determined that the proposed regulatory action will have an impact on small busi- nesses the same as non−small business as noted in the Impact on Business section. RESULTS OF ECONOMIC IMPACT ASSESSMENT/ANALYSIS I MPACT ON JOBS/NEW BUSINESSES: The Commission has determined that this regulatory proposal will not have a significant impact on the cre- ation of new jobs or businesses, the elimination of jobs or existing businesses, or the expansion of businesses in California.

For this purpose, the consolidated small business definition provided in Government Code sec- tion 11346.3, subdivision (b), paragraph (4), was utilized. While this regulation does create some new require- ments and costs to cardroom and TPPPS businesses, such as the requirement that owners and employees ap- plying for a renewal license submit for fingerprint scan- ning, the new costs are not substantial and cut across the entire cardroom and TPPPS industry. The repeal of

Chapter 2.2 and the registration and li- censing of gambling businesses will result in the single gambling business no longer being able to operate. The gambling business has employed an average of two su- pervisors and four players over the last four years with an annual average wage of $296,000. The owners of the gambling business also possess a TPPPS business li- cense so it is possible that these individuals will find employment under the TPPPS business.

B ENEFITS OF PROPOSED REGULATION: These proposed regulations will have the benefit of providing specific procedures to the entire application process, from applying to the Commission for a license or work permit through review by the Bureau and Com- mission. This streamlining and making consistent of all processes will have the benefit of making the applica- tion process faster while strengthening the protection to the public by ensuring that only people of good charac- ter, honesty, and integrity are allowed to work in con- trolled gaming.

Additional aspects of the regulations have been up- dated to provide clarity and consistency. These include: expanding the ability to appoint someone to assist an applicant or license to all licensing categories; expand- ing the defined terms to provide further clarity to the Commission’s regulations; reorganizing Commission forms to reduce both the number of forms and the re- moval of unnecessary questions; and, updating Com- mission regulations for other technical changes that will clarify and improve the functions of the Bureau and Commission.

CONSIDERATION OF ALTERNATIVES The Commission must determine that no reasonable alternative considered by the Commission or that has otherwise been identified and brought to the attention of the Commission would be more effective in carrying out the purpose for which the action is proposed, would be as effective and less burdensome to affected private persons than the proposed action, or would be more cost−effective to affected private persons and equally effective in implementing the statutory policy or other provision of law. 878

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z INITIAL STATEMENT OF REASONS, INFORMATION AND TEXT OF PROPOSAL The Commission has prepared an Initial Statement of Reasons and the exact language for the proposed action and has available all the information upon which the proposal is based. Copies of the language and of the Ini- tial Statement of Reasons, and all of the information up- on which the proposal is based, may be obtained at the hearing or prior to the hearing upon request from the Commission at 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833−4231.

A V AILABILITY AND LOCATION OF THE RULEMAKING FILE AND THE FINAL STATEMENT OF REASONS All the information upon which the proposed action is based is contained in the Rulemaking File that will be available for public inspection and copying at the Com- mission’s office throughout the rulemaking process. Arrangements for inspection and/or copying may be made by contacting the primary contact person named below.

You may obtain a copy of the Final Statement of Rea- sons, once it has been prepared, by making a written re- quest to one of the contact persons named below or by accessing the Commission’s Website listed below.

CONTACT PERSONS All comments and inquiries concerning the substance of the proposed action should be directed to the follow- ing primary contact person: Joshua Rosenstein, Legislative and Regulatory Specialist Legislation and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833−4231 Telephone: (916) 274−5823 Fax: (916) 263−0499 E−mail: jrosenstein@cgcc.ca.gov Requests for a copy of the Initial Statement of Rea- sons, proposed text of the regulation, modified text of the regulation, if any, or other technical information up- on which the proposed action is based should be direct- ed to the following backup contact person: Alex Hunter, Legislative and Regulatory Specialist Legislation and Regulatory Affairs Division California Gambling Control Commission 2399 Gateway Oaks Drive, Suite 220, Sacramento, CA 95833−4231 Telephone: (916) 263−1301 Fax: (916) 263−0499 E−mail: ahunter@cgcc.ca.gov WEBSITE ACCESS Materials regarding this proposed action are also available on the Commission’s Website at www.cgcc.ca.gov.

TITLE 9. DEPARTMENT OF HEALTH CARE SERVICES SUBJECT: Adult Residential Treatment Services (ARTS) Provider Requirements, DHCS−15−009 NOTICE IS HEREBY GIVEN that the Department of Health Care Services (Department) proposes to amend California Code of Regulations, title 9,

section 1840.332 after considering all public comments, objec- tions, and recommendations. WRITTEN COMMENT PERIOD Any interested person or his or her duly authorized representative may submit written comments to the De- partment relevant to the regulatory action described in this notice. Please label any comments as pertaining to Adult Residential T reatment Service (ARTS) Provider Re- quirements, DHCS−15−009 and submit using any of the following methods: Mail Delivery: Department of Health Care Services Office of Regulations, MS 0015 P.O.

Box 997413 Sacramento, CA 95899−7413 Hand Delivery: Department of Health Care Services Office of Regulations 1501 Capitol Avenue, Suite 5084 Sacramento, CA 95814 FAX: (916) 440−5748 Email: regulations@dhcs.ca.gov The written comment period closes at 5:00 p.m. on August 5, 2020, any written comments, regardless of 879

CALIFORNIA REGULATORY NOTICE REGISTER 2020, VOLUME NUMBER 25-Z the method of transmittal must be received by the Office of Regulations by 5:00 p.m. on this date for consideration. Written comments should include the author’s con- tact information so the Department can provide notifi- cation of any further changes to the regulation proposal. A public hearing has not been scheduled for this rule- making. However, the Department will conduct a hear- ing if a written request for a public hearing is received from any interested person or his or her duly authorized representative, no later than 15 days prior to the close of the written comment period, pursuant to Government Code

section 11346.8. The Department shall consider all comments re- ceived regarding the proposal equally, whether submit- ted in writing or through oral testimony at a public hearing. AUTHORITY AND REFERENCE These regulations are being proposed under the fol- lowing authorities: Sections 10725, 14124.5, 14680 and 147