California Business and Professions Code 19890.5 – In addition to the requirements of Section 19852, in order to be …
In addition to the requirements of Section 19852, in order to be eligible to receive a gambling license to own a gambling enterprise, a limited liability company shall comply with all of the following requirements:
(a) Be registered to do business in California.
Terms Used In California Business and Professions Code 19890.5
- board: means any entity listed in Section 101, the entities referred to in Sections 1000 and 3600, the State Bar, the Department 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 Business and Professions Code 31
- Controlled gambling: means to deal, operate, carry on, conduct, maintain, or expose for play any controlled game. See California Business and Professions Code 19805
- Department: means the Department of Justice. See California Business and Professions Code 19805
- Gambling: means to deal, operate, carry on, conduct, maintain, or expose for play a controlled game. See California Business and Professions Code 19805
- Gambling enterprise: means a natural person or an entity, whether individual, corporate, or otherwise, that conducts a gambling operation and that by virtue is required to hold a state gambling license under this chapter. See California Business and Professions Code 19805
- Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
- License: means a gambling license, key employee license, or any other license issued by the commission pursuant to this chapter or regulations adopted pursuant to this chapter. See California Business and Professions Code 19805
- Licensee: means any person authorized by a license, certificate, registration, or other means to engage in a business or profession regulated by this code or referred to in Sections 1000 and 3600. See California Business and Professions Code 23.8
- State: means the State of California, unless applied to the different parts of the United States. See California Business and Professions Code 21
(b) Maintain an office in the gambling establishment.
(c) Comply with all of the requirements of the laws of this state pertaining to a limited liability company.
(d) Maintain an ongoing ledger in an office of the limited liability company in California that shall meet both of the following conditions:
(1) At all times reflect the ownership, membership, and management interests.
(2) Be available for inspection by the department at all reasonable times without notice.
(e) Supply the following supplemental forms and information in accordance with Section 19865 with the initial application, and thereafter upon request to the department, which shall include, but not be limited to, all of the following:
(1) The organization, financial structure, and nature of the business to be operated, including the names, personal and criminal history, and fingerprints of all members and managers, and the name, address, and interest of each owner, member, and manager.
(2) The rights, privileges, and relative priorities of members as to the return of contributions to capital, and the right to receive income, accept losses, and incur liabilities.
(3) The terms on which membership interests are to be offered.
(4) The terms and conditions on all outstanding loans, mortgages, trust deeds, pledges, or any other indebtedness or security interest.
(5) The extent of the holding in the limited liability company of all underwriters, and their remuneration as compensation for services, in the form of salary, wages, fees, or otherwise.
(6) The remuneration to persons other than managers or members in excess of one hundred thousand dollars ($100,000) per annum.
(7) Bonus and profit-sharing arrangements.
(8) Management, consulting, and service contracts related to the operation of controlled gambling.
(9) Options existing or to be created.
(10) Financial statements for at least three fiscal years preceding the year of application, or, if the limited liability company has not been in existence for a period of three years, financial statements from the date of its formation. All financial statements shall be prepared in accordance with generally accepted accounting principles and audited by a licensee of the California Board of Accountancy in accordance with generally accepted auditing standards.
(11) Any further financial data that the department reasonably deems necessary or appropriate for the protection of the state.
(12) An annual profit-and-loss statement, an annual balance sheet, and a copy of its annual federal income tax return, within 30 calendar days after the return is filed with the Internal Revenue Service.
(Added by Stats. 2009, Ch. 233, Sec. 13. (AB 293) Effective January 1, 2010.)