CA SB1519

Authorizes the California Gambling Control Commission to discretionally exempt persons denied a license solely for failing to clearly establish eligibility and qualification from restrictions on contracting, employment, and profit-sharing with licensed gambling entities.

Clarifies that applicants with out-of-state misdemeanor convictions involving dishonesty or moral turpitude may be considered for licensure if the conviction was expunged under the laws of the state where the conviction occurred, applying the same standard as California convictions.

Exemption does not apply if additional grounds for license denial existed beyond the failure to establish eligibility and qualification, regardless of whether those grounds were formally cited.

Allows denied applicants who qualify for exemption to retain interests in gambling business entities and receive dividends or distributions, instead of being required to divest within 60 days at fair market value.

Approved by Governor July 15, 2024.