Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) If
the Commission finds that a cardroom business licensee is out of compliance
with any mandatory duty specified in or imposed by the Act or any Commission or
Bureau regulation, or any local ordinance which directly affects the public
health, safety, or welfare, which is not otherwise listed in these disciplinary
guidelines, pursuant to Business and Professions Code section
19922,
the penalty will be one day of suspension, stayed upon the payment of a
penalty, within the guidelines of Business and Professions Code, sections
19930,
subdivision (c), and 19943, subdivision (b), as follows:
(1) If the cardroom business licensee has
five tables or less and has an annual gross gaming revenue up to and including
$10,000, the penalty will be between $50 and $100, based upon the factors in
mitigation and aggravation.
(2) If
the cardroom business licensee has ten tables or less or has an annual gross
gaming revenue over $10,000, up to and including $200,000, the penalty will be
between $100 and $2000, based upon the factors in mitigation and
aggravation.
(3) If the cardroom
business licensee has an annual gross gaming revenue over $200,000, the penalty
will be between $250 and $5,000, based upon the factors in mitigation and
aggravation.
(b) A
cardroom business licensee will be subject to a minimum discipline of
suspension for one day of normal business operation and a maximum discipline of
suspension for 30 days of normal business operation, which may be stayed on
terms and conditions and upon a monetary penalty of twenty-five percent of the
average daily gross gaming revenue, not more than $10,000, but not less than
$300, if the Commission finds that the establishment has violated any of the
following but has not been disciplined by the Commission for such a violation
previously:
(1) Been found, by any
administrative tribunal or court in a separate proceeding, to have violated or
be in violation of any law involving or relating to gambling, where the penalty
imposed was a monetary fine or citation,
(2) Failed to maintain adequate financing for
chips in use or for player banks,
(3) Violated Business and Professions Code,
section
19878
(contract with, employment of, services provided by person(s) with denied,
suspended, or revoked license),
(4)
Violated Business and Professions Code, section
19912
(failure to have valid work permit),
(5) Violated Business and Professions Code,
section
19924
(failure to maintain security controls),
(6) Violated any law or ordinance with
respect to campaign finance disclosure or contribution limitations, pursuant to
Business and Professions Code, section
19982,
(7) Provided false or incomplete financial
data, in violation of Sections
12312,
12313,
12315, and
12316, regarding accounting and
financial reporting,
(8) Refused to
allow Bureau or Commission inspection of records or information required to be
maintained pursuant to Sections
12312,
12313,
12315, and
12316, regarding accounting and
financial reporting,
(9) Violated
California Code of Regulations, Title 11, Section
2050, subsection (a) (failure to
maintain cardroom owner type licensee or key employee licensee on
premises),
(10) Violated California
Code of Regulations, Title 11, Section 2052 (failure to furnish information),
or
(11) Violated California Code of
Regulations, Title 11, Section
2070 (unsuitable gaming
activities).
(c) A
cardroom business licensee will be subject to a minimum discipline of
suspension for five days of normal business operation and a maximum discipline
of revocation, which may be stayed on terms and conditions and any monetary
penalty as described in paragraph (7) of subsection (d) of Section
12554, if the Commission finds that
the establishment has:
(1) Violated or is out
of compliance with conditions, limitations, or orders or directives imposed by
the Commission, either as part of an initial license, renewal license, or
pursuant to disciplinary action,
(2) Been found, by any administrative
tribunal or court in a separate proceeding, to have violated or be in violation
of any law involving or relating to gambling, where the penalty imposed was the
suspension or revocation of a license or privilege,
(3) Intentionally misrepresented a material
fact on an application or supplemental application for licensure,
(4) Failed to maintain adequate financing for
chips in use or for player banks, and has been disciplined by the Commission
for such a violation previously,
(5) Failed to report to the Commission and
Bureau, pursuant to Section
12369, the operation of a business
organization participating in a California game when the owners or management
of the establishment knew or should have known that a business organization was
operating in the establishment in violation of Section
12005,
(6) Concealed or persistently did not
disclose ownership, interest, or key employee status, pursuant to Business and
Professions Code, sections
19850,
19851,
19853,
19854,
19855,
19883,
or
19901,
(7) Violated Business and Professions Code,
section
19878
(contract with, employment of, services provided by person(s) with denied,
suspended, or revoked license or registration), and has been disciplined by the
Commission for such a violation previously,
(8) Violated Business and Professions Code,
section
19912
(failure to have valid work permit), and has been disciplined by the Commission
for such a violation previously,
(9) Violated Business and Professions Code,
section
19921
(failure to exclude persons under 21 from access to gambling areas), and has
been disciplined by the Commission for such a violation previously, or violated
Business and Professions Code, section
19941
(failure to prohibit persons under 21 from gambling, loitering, being employed
in gambling areas, or using fraudulent identification to gamble, loiter, or be
employed), unless the cardroom business licensee provides the defense described
in Business and Professions Code, section
19941,
subdivision (c), or unless the cardroom business licensee shows that the
cardroom business licensee has reasonably relied on picture identification
which appears to be government issued, including determining that the
identification looks real, there are no obvious alterations, the photograph and
description reasonably match the person, and the person reasonably looks age 21
or over.
(10) Violated Business and
Professions Code, section
19924
(failure to maintain security controls), and has been disciplined by the
Commission for such a violation previously,
(11) Violated Business and Professions Code,
section
19942
(willful failure to report or pay license fee),
(12) Violated any law or ordinance with
respect to campaign finance disclosure or contribution limitations, pursuant to
Business and Professions Code, section
19982,
and has been disciplined by the Commission for such a violation
previously,
(13) Provided false or
intentionally incomplete financial data, in violation of Sections
12312,
12313,
12315, and
12316, regarding accounting and
financial reporting, and has been disciplined by the Commission for such a
violation previously,
(14) Refused
to allow Bureau or Commission inspection of records or information required to
be maintained pursuant to Sections
12312,
12313,
12315, and
12316, regarding accounting and
financial reporting, and has been disciplined by the Commission for such a
violation previously,
(15) Violated
California Code of Regulations, Title 11, Section
2050, subsection (a) (failure to
maintain cardroom owner type licensee or key employee licensee on premises),
and has been disciplined by the Commission for such a violation
previously,
(16) Violated
California Code of Regulations, Title 11, Section 2052 (failure to furnish
information), and has been disciplined by the Commission for such a violation
previously, or
(17) Violated
California Code of Regulations, Title 11, Section
2070 (unsuitable gaming
activities), and has been disciplined by the Commission for such a violation
previously.
1. New section
filed 2-8-2007; operative 3-10-2007 (Register 2007, No. 6).
2.
Change without regulatory effect amending section filed 8-8-2008 pursuant to
section 100, title 1, California Code of
Regulations (Register 2008, No. 32).
3. Change without regulatory
effect amending subsections (b)(10) and (c)(13)-(14) filed 1-17-2018 pursuant
to section 100, title 1, California Code of
Regulations (Register 2018, No. 3).
4. Amendment of section heading
and section filed 12-12-2020; operative 1-1-2021 pursuant to Government Code
section 11343.4(b) (Register 2020, No. 51). Filing deadline specified in
Government Code section 11349.3(a) extended 60 calendar days pursuant to
Executive Order N-40-20.
Note: Authority cited: Sections 19825, 19840, 19841 and
19930, Business and Professions Code. Reference: Sections 19823, 19824, 19850,
19851, 19853, 19854, 19855, 19875, 19878, 19883, 19901, 19912, 19920, 19921,
19922, 19923, 19924, 19930, 19941, 19942 and 19982, Business and Professions
Code; and Department of Alcoholic Beverage Control v. Alcoholic Beverage
Control Appeals Board (2004), 118 Cal. App. 4th 1429, 1444-1445.
