Cal. Code Regs. Tit. 4, § 12272 - Review and Approval of Tppps Contracts

(a)

(1) Proposition player services must not be provided except pursuant to a written TPPPS contract approved in advance by the Bureau. Provision of proposition player services by any person subject to licensing under Chapter 2, or engagement of proposition player services by a cardroom owner type licensee, without a TPPPS contract as required by this section is a violation of this section. The Bureau must approve a TPPPS contract only if all the following requirements have been satisfied:

(A) The TPPPS contract is consistent with this regulation and the Act.

(B) The TPPPS contract does not provide for controlled gambling that will be conducted in a manner that is inimical to the public health, safety, or welfare.

(C) The TPPPS contract will not create or enhance the dangers of unsuitable, unfair, or illegal practices, methods, or activities in the conduct of controlled gambling or in the carrying on of the business and related financial arrangements.

(D) The TPPPS contract will not undermine public trust that the controlled gambling operations covered by the TPPPS contract will be conducted honestly, by reason of the existence or perception of any collusive arrangement between any party to the TPPPS contract and the cardroom owner type licensee or TPPPS business endorsee licensee or otherwise.

(2) A complete application for TPPPS contract approval must include all of the following:

(A) A completed Application for Contract Approval to Provide Proposition Player Services, CGCC-CH3-02 (Rev. 11/21), which is attached in Appendix A to this chapter.

(B) A completed Appointment of Designated Agent, CGCC-CH1-04.

(C) An executed copy of the TPPPS contract that specifically addresses all of the requirements of Section 12270.

(D) The application fee required in Section 12090.

(E) The deposit as required by Title 11, California Code of Regulations, Section 2037. The Bureau may require an additional sum to be deposited to pay the final costs of the review and approval or disapproval of the TPPPS contract. Any money received as a deposit in excess of the costs incurred in the review and approval or disapproval of the TPPPS contract will be refunded and an itemized accounting will be provided to the TPPPS business licensee, or TPPPS business licensee's designee.

(3) The Bureau must notify the applicant, in writing, within ten working days of receiving the application that the application or resubmitted application is complete or incomplete. If an application is incomplete, the Bureau must request, in writing, any information, fees, or documentation needed to complete the application. Unless extended by the Bureau for further investigation up to 90 days or with the consent of the applicant, review and approval or disapproval of a TPPPS contract must be completed within 90 days of receiving a completed application and notice thereof must be sent via United States mail to the applicant or the applicant's designee within ten days of the Bureau's decision. Notice of disapproval of the TPPPS contract or amendments must specify the cause.

(b) An executed copy of the currently effective TPPPS contract, and all amendment(s) thereto, and a copy of all Bureau notices that approved the TPPPS contract and any amendment must be maintained at the gambling establishment and must be provided for review or copying upon request by any representative of the Commission or Bureau.

(c) The term of any TPPPS contract may not exceed two years and may not be extended or renewed without the prior approval of the Bureau. No amendment changing any of the TPPPS contract terms referred to in Section 12270, other than paragraphs (3), (4), and (6) of subsection (b) thereof, may become effective during the term of a TPPPS contract without the prior written approval of the Bureau. If any amendment is made to a TPPPS contract term specified in paragraphs (3), (4), or (6) of subsection (b) of Section 12270, both parties to the TPPPS contract must notify the Commission and Bureau in writing of the amendment within ten days of the execution thereof by the parties to the TPPPS contract.

Notes

Cal. Code Regs. Tit. 4, § 12272

1. Renumbering of former section 12200.9 to new section 12272, 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.
2. Amendment of subsections (a)(2)(A) and (a)(2)(D) filed 10-7-2021 as an emergency; operative 10-7-2021 (Register 2021, No. 41). A Certificate of Compliance must be transmitted to OAL by 4-5-2022 or emergency language will be repealed by operation of law on the following day.
3. Amendment of subsections (a)(2)(A) and (a)(2)(D) refiled 4-4-2022 as an emergency; operative 4-4-2022 (Register 2022, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-5-2022 or emergency language will be repealed by operation of law on the following day.
4. Amendment of subsections (a)(2)(A) and (a)(2)(D) refiled 7-5-2022 as an emergency; operative 7-5-2022 (Register 2022, No. 27). A Certificate of Compliance must be transmitted to OAL by 10-3-2022 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 7-5-2022 order, including further amendment of subsections (a)(2)(A) and (a)(2)(D), transmitted to OAL 7-21-2022 and filed 9-1-2022; amendments effective 9-1-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 35).
6. Amendment of subsection (a)(2)(B) filed 6-22-2023; operative 10-1-2023 (Register 2023, No. 25).

Note: Authority cited: Sections 19840, 19841 and 19984, Business and Professions Code. Reference: Sections 19951 and 19984, Business and Professions Code.

1. Renumbering of former section 12200.9 to new section 12272, 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.
2. Amendment of subsections (a)(2)(A) and (a)(2)(D) filed 10-7-2021 as an emergency; operative 10/7/2021 (Register 2021, No. 41). A Certificate of Compliance must be transmitted to OAL by 4-5-2022 or emergency language will be repealed by operation of law on the following day.
3. Amendment of subsections (a)(2)(A) and (a)(2)(D) refiled 4-4-2022 as an emergency; operative 4/4/2022 (Register 2022, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-5-2022 or emergency language will be repealed by operation of law on the following day.
4. Amendment of subsections (a)(2)(A) and (a)(2)(D) refiled 7-5-2022 as an emergency; operative 7/5/2022 (Register 2022, No. 27). A Certificate of Compliance must be transmitted to OAL by 10-3-2022 or emergency language will be repealed by operation of law on the following day.
5. Certificate of Compliance as to 7-5-2022 order, including further amendment of subsections (a)(2)(A) and (a)(2)(D), transmitted to OAL 7-21-2022 and filed 9-1-2022; amendments effective 9/1/2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 35).
6. Amendment of subsection (a)(2)(B) filed 6-22-2023; operative 10/1/2023 (Register 2023, No. 25).