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California Law (Last Updated: March 4, 2014) |
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Business and Professions Code - BPC |
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Division 8. SPECIAL BUSINESS REGULATIONS |
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Chapter 5. The Gambling Control Act |
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ARTICLE 6. Licensing of Partnerships and Limited Liability Companies |
Section 19890.
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In addition to the requirements of Section 19852, in order to be eligible to receive a gambling license to own a gambling enterprise, a partnership shall comply with all of the following requirements:
(a) Be registered as may be required under the laws of this state.
(b) Maintain an office of the partnership in the gambling establishment.
(c) Comply with all of the requirements of the laws of this state pertaining to partnerships.
(d) Maintain an ongoing ledger in an office of the partnership in California that shall meet both of the following conditions:
(1) At all times reflects the ownership of all interests in the partnership.
(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 license application, and thereafter upon request, to the department, which shall include, but not be limited to:
(1) The organization, financial structure, and nature of the business to be operated, including the name, address, personal history, interest, and fingerprints of each partner and manager.
(2) The rights, privileges, and relative priorities of any partners as to the return of contributions to capital, and the right to receive income, accept losses, and incur liabilities.
(3) The terms on which partnership 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 partnership 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 general partners 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 registration, or, if the partnership 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.