CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

99

Introduced by Assembly Member Blanca Rubio

February 20, 2026

An act to amend Sections 19813 and 19883 of the Business and Professions Code, relating to gambling.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

(1) Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. Under existing law, the commission consists of 5 members appointed by the Governor, subject to confirmation by the Senate. Existing law authorizes the Governor to remove any member of the commission for cause, as specified.

This bill would additionally require the Governor to notify the Legislature of the removal of any member of the commission.

(2) Existing law prohibits a corporation from being eligible for a state gambling license unless its officers, directors, and shareholders individually apply for and obtain a state gambling license. Existing law also requires every key employee to apply for and obtain a key employee license. Existing law requires an officer, director, or key employee of a corporate owner licensee to apply for a license within 30 calendar days after they become an officer, director, or key employee of the corporation and requires the corporation to immediately remove an officer or director who fails to apply for a license within that 30-day period.

This bill would make technical, nonsubstantive changes to these provisions.

The people of the State of California do enact as follows:

SECTION 1.

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

19813.

(a) Of the members initially appointed, two shall be appointed for a term of two years, two shall be appointed for a term of three years, and one shall be appointed for a term of four years. After the initial terms, the The term of office of each a member of the commission is four years.

(b) The Governor shall appoint the members of the commission, subject to confirmation by the Senate, and shall designate one member to serve as chairperson. The initial appointments shall be made within three months of the operative date of this section. Thereafter, vacancies Vacancies shall be filled within 60 days of the date of the vacancy by the Governor, subject to confirmation by the Senate.

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

SEC. 2.

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

19883.

(a) To the extent required by this chapter, officers and directors, shareholders, lenders, holders of evidence of indebtedness, underwriters, agents, or employees of a corporate owner licensee shall be licensed individually. The corporation shall require these persons to apply for a gambling license, and shall notify the department of every change of corporate officers, directors, or key employees within 10 business days after the change. An officer, director, or key employee who is required to apply for a license shall apply for the license within 30 calendar days after he or she becomes they become an officer, director, or key employee.

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

(1) He or she fails They fail to apply for the license within 30 calendar days after becoming an officer or director.

(2) He or she is They are denied a license.

(3) His or her Their license is revoked.

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

(d) If any a shareholder who is required to apply for a gambling license fails to apply for the license within the time required, the shareholder shall be deemed to have been denied a license for purposes of subdivision (b) of Section 19882.

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