(a) Notwithstanding Section 19852 or any other provision of law, and solely for the purpose of the licensure of a card club located on any portion of, or contiguous to, the grounds upon which a racetrack is or had been previously located and horserace meetings were authorized to be conducted by the California Horse Racing Board on or before January 1, 2012, that is owned by a limited partnership that also owns or owned the racetrack, the commission may, at its discretion, exempt all of the following from the licensing requirements of this chapter:
(1) The limited partners in a limited partnership that holds interest in a holding company if all of the following criteria are met:
Terms Used In California Business and Professions Code 19852.2
- board: means any entity listed in Section 101, the entities referred to in Sections 1000 and 3600, the State Bar, the Bureau of Real Estate, and any other state agency that issues a license, certificate, or registration authorizing a person to engage in a business or profession. See California Education Code 17352
- Commission: means the California Gambling Control Commission. See California Government Code 11004
- Limited partnership: means a partnership formed by two or more persons having as members one or more general partners and one or more limited partners. See California Government Code 11004
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- State: means the State of California, unless applied to the different parts of the United States. See California Education Code 17325
- Subdivision: means a subdivision of the section in which that term occurs, unless some other section is expressly mentioned. See California Education Code 17319
(A) The limited partners of the limited partnership in the aggregate directly hold at least 95 percent of the interest in the holding company.
(B) The limited partner is one of the following:
(i) An “institutional investor” as defined in subdivision (w) of Section 19805.
(ii) An “employee benefit plan” as defined in Section 1002(3) of Title 29 of the United States Code.
(iii) An investment company that manages a state university endowment.
(2) Other limited partners in a limited partnership described in paragraph (1), if the partners do not number more than five and each partner indirectly owns 1 percent or less of the shares of the interest in the holding company.
(3) A limited partner in a limited partnership that holds in the aggregate less than 5 percent of the interest in a holding company.
(b) Nothing in this section shall be construed to limit the licensure requirements for a general partner of a limited partnership or a limited partner that is not specifically described in this section.
(Amended by Stats. 2013, Ch. 760, Sec. 1. (SB 472) Effective January 1, 2014.)