Report 2018-132 Recommendation 18 Responses

Report 2018-132: Bureau of Gambling Control and California Gambling Control Commission: Their Licensing Processes Are Inefficient and Foster Unequal Treatment of Applicants (Release Date: May 2019)

Recommendation #18 To: Gambling Control Commission, California

To ensure that it does not hold hearings that may cause applicants unnecessary harm, the commission should, following the Legislature's amendment to state law that we previously recommend, establish and implement formal protocols for informing applicants how to withdraw their requests for hearings and for guiding commission staff when discontinuing the hearing process at the request of applicants.

60-Day Agency Response

The Commission strengthened and formalized its existing protocols associated with informing applicants how to withdraw their request for a hearing and how to process and discontinue a hearing once a request to withdraw from the hearing process is made.

The formalized protocols ensure that the applicant is formally advised of the option to withdraw their request for a hearing twice, in two separate written notices, provided to all parties well in advance of and at different stages prior to the hearing date.

Please see ATTACHMENT D for supporting documentation.

California State Auditor's Assessment of 60-Day Status: Fully Implemented

The commission provided revised and new procedures that direct staff how to inform applicants about what is required to withdraw from the evidentiary hearing process, as well as revised letters to applicants that provide specific guidance on how to submit a withdrawal request. The procedures also set forth steps to discontinue the hearing process upon receipt of such a request from the applicant. In order to avoid any ongoing or future tension with state law, however, we reiterate our recommendation that the Legislature amend the Gambling Act to allow the commission to take action at its regular licensing meetings rather than require it to hold evidentiary hearings.

All Recommendations in 2018-132

Agency responses received are posted verbatim.