California Code of Regulations › Title 4 - Business Regulations › Division 18 - California Gambling Control Commission › Chapter 2 - Licenses and Work Permits › Article 4 - Interim Owner Category License › Section 12140 - Conditions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
All of the following conditions apply to an interim owner
					 category license granted by the Commission:
(a) Upon issuance or denial of a regular
				  license, any related interim owner category license will become
				  invalid.
(b) The term of an interim
				  owner category license will be determined by the Commission and will be based
				  in part on the time necessary to process and consider the application for a
				  regular license, but in no event will the term be longer than two years. The
				  Commission may issue a renewal interim owner category license if the
				  application process has not been, or will not be, concluded by the expiration
				  date of the interim owner category license.
(c) Issuance of an interim owner category
				  license does not prejudice or obligate the Commission to grant a regular
				  license. Issuance of a regular owner category license is subject to the results
				  of a complete background investigation by the Bureau, the conduct of the
				  applicant during the term of the interim owner category license, and final
				  approval of the Commission pursuant to Sections
				  12112 and
				  12040.
(d) Issuance of an interim owner category
				  license does not create a vested right in the holder to either an extension of
				  the interim owner category license or the issuance of a regular
				  license.
(e) Issuance of an interim
				  owner category license does not change the qualification, or disqualification,
				  requirements for a regular license under the Act or this division.
(f) The holder of the interim owner category
				  license must maintain a key employee licensee or TPPPS supervisor licensee who
				  will control and oversee gambling operations or the provision of third-party
				  proposition player services at all times. The holder of an interim owner
				  category license must provide the Bureau with the name of any new key employee
				  licensee or TPPPS supervisor licensee appointed pursuant to paragraph (2) of
				  subsection (a) of Section
				  12136 within 30 calendar-days
				  following the appointment of that key employee licensee or TPPPS supervisor
				  licensee. Within 30 calendar-days of its occurrence, the holder of an interim
				  owner category license must-provide the Bureau with the name of any person who
				  provides any service or property to the cardroom business licensee-or TPPPS
				  business licensee under any arrangement whereby the person receives payment
				  based on the earnings, profits or receipts of the cardroom business licensee or
				  TPPPS business licensee.
(g) The
				  holder of an interim owner category license must pay all applicable annual fees
				  associated with the license.
(h)
				  The holder of an interim owner category license must comply with the provisions
				  of the Act, this division and Title 11, Division 3, of the California Code of
				  Regulations.
(i) During the term of
				  an interim owner category license, any proceeds derived from the operation of
				  the gambling enterprise that would otherwise be payable to a new owner must be
				  held in an escrow account and not disbursed until the disposition of ownership
				  interest has been resolved and received Commission approval and all owner
				  category licensees have been approved by the Commission for a regular license
				  pursuant to Section
				  12112. This paragraph does not
				  prevent the payment of any taxes, operating expenses, preexisting obligations,
				  preexisting dependent support or any other distribution of proceeds that is
				  approved by the Commission.
(j) The
				  Commission, in its sole discretion and on an individual case-by-case basis, may
				  impose any additional conditions necessary to address particular factual
				  situations related to a request for an interim owner category
				  license.
1. New
					 article 5 (sections
					 12140-12142) and section filed
					 12-12-2002; operative 12-12-2002 pursuant to Government Code section
					 11343.4
					 (Register 2002, No. 50).
2. Change without regulatory effect
					 amending section and NOTE filed 6-26-2003 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2003, No. 26).
3. Change without regulatory
					 effect redesignating former subsections (a)(3)(i)-(iv) as subsections
					 (a)(3)(A)-(D) filed 8-8-2008 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 2008, No. 32).
4. Change without regulatory
					 effect amending section and NOTE filed 6-3-2013 pursuant to section
					 100, title 1, California Code of
					 Regulations; operative 7-1-2013 in accordance with Governor's Reorganization
					 Plan No. 2 of 2012 (Register 2013, No. 23).
5. Relocation and
					 amendment of article 5 heading from preceding section
					 12140 to precede section
					 12134, repealer of former section
					 12142 and renumbering of former
					 section 12347 to new section
					 12142, including 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
						19811,
						19823,
						19824,
						19825,
						19826,
						19840,
						19841,
						19853,
						19870
						and
						19984,
						Business and Professions Code. Reference: Sections
						19816,
						19824,
						19841(s),
						19850,
						19851,
						19855,
						19857,
						19859,
						19869,
						19870(b)
						and
						19984,
						Business and Professions Code.