Cal. Code Regs. Tit. 4, § 12388 - Extension of Credit, Check Cashing, and Automatic Teller Machines (ATMs)

(a) A cardroom business licensee may extend credit to a patron if, prior to extending credit to the patron, the cardroom business licensee determines that an extension of credit is not prohibited by any statute, law, regulation, or local ordinance. A cardroom business licensee may not extend credit to a TPPPS category licensee that is a party to a contract with the TPPPS owner type licensee to provide third-party proposition player services. A cardroom business licensee may not extend credit to an employee of the licensee to act as a "house prop player" or "public relations player" in any controlled game. In addition to complying with all laws regarding the issuance of credit, a cardroom business licensee that extends credit to a patron must address, in written policies and procedures and credit application form(s), the following requirements for the extension and collection of credit:

(1) Establish a method for determining the maximum amount which will be advanced to a patron, changes in the credit amount, the maximum time an extension of credit will be outstanding, and repayment terms.

(2) Prior to extending credit to a patron for the first time, ensure that the person requesting the credit is identified by examining the patron's unexpired government-issued form of identification evidencing residence and bearing a photograph of the patron, such as a driver's license or passport.

(3) Ensure that the patron is credit worthy through an assessment of one of the following:

(A) Receipt of patron information on a credit application form which includes the patron's name and signature, current address, telephone number, social security number, bank and/or trade references, employment information and income information, which must be verified and used to form an assessment of the patron's financial situation, collateral circumstances and credit worthiness.

(B) Receipt of a signed and dated authorization from the patron to access their consumer credit report from a bona fide credit-reporting agency to show the patron has an established credit history consistent with approved credit policies and receipt of information from a bona fide credit-reporting agency that the patron has an established credit history consistent with approved credit policies.

(C) If any previous credit transactions exist between the patron and the gambling establishment, an examination of those records showing that the patron has paid in a timely manner all credit instruments and/or otherwise documenting that there is a reasonable basis for extending the credit amount to the patron.

(4) A cardroom owner type licensee or designated key employee licensee other than a dealer must approve any credit application.

(5) No credit may be extended to any patron who has signed a self-exclusion form (Title 4 CCR Section 12464) or has self-restricted access to credit (Title 4 CCR Section 12463) for the time period of the exclusion or restriction.

(6) Notify the patron of the issuance or denial of credit. The notification for issuing credit must include the date of issuance, terms of repayment, and interest charges, if applicable. If a patron is denied credit, and the denial is based, in whole or part, on any information contained in a consumer credit report, the cardroom business licensee must comply with Civil Code section 1785.20.

(7) If a patron is approved for credit pursuant to subparagraph (B) of paragraph (3), a copy of the patron's consumer credit report obtained by the cardroom business licensee must be kept on file with the cardroom for as long as that patron's credit account is open.

(8) Written or electronic records must be maintained on each attempt to collect on delinquent credit accounts.

(9) For each patron issued credit, the cardroom business licensee must maintain a record of the patron's credit limit, payment schedule, outstanding credit balance, and the patron's signature on a credit agreement.

(b) For each patron that is issued credit for the first time, the following information must be collected and maintained:

(1) Patron's name, current address and telephone number;

(2) A photocopy of the patron's unexpired government-issued form of identification evidencing residence and bearing a photograph of the patron, such as a driver's license or passport;

(3) Basis upon which credit verified, as listed in subsection (a)(3);

(4) Documentation of authorization by a person designated by management to approve credit.

(c) If payment upon an extension of credit is delinquent for more than 90 days, as determined by the original credit agreement, the person to whom credit was extended must be prohibited from obtaining additional credit until the amount owed is paid in full.

(d) No cardroom business licensee may cash any check if cashing such a check is prohibited by any statute, regulation, or ordinance. No cardroom employee type licensee will be permitted to cash any check drawn against any federal, state, county, or other government fund, including, but not limited to, social security, unemployment insurance, disability payments, or public assistance payments, as outlined in Business and Professions Code section 19841, subdivision (q), unless the check is for wages or payment for goods or services.

(e) A cardroom business licensee who does not deposit a patron's check within three banking days after receipt will be considered to have extended credit to that patron.

(f)

(1) A cardroom business licensee will not allow a patron to replace, redeem, reclaim or repurchase a personal check with a subsequent personal check, unless that patron has been approved for an extension of credit as provided in this Article and the amount of the check or checks to be replaced is within the patron's approved credit limit.

(2) A subsequent personal check used by a patron to replace a previous personal check may not be replaced with another personal check at any time after receipt by the cardroom business licensee.

(3) Paragraph (1) of this subsection does not apply to a personal check that has not been deposited by a cardroom business licensee within three banking days after a receipt, or to a dishonored check.

(g) A cardroom business licensee that cashes checks for a patron must address, in written policies and procedures, the following requirements for the cashing of checks:

(1) Prior to cashing a check for a patron, the designated employee must determine that:

(A) The cardroom business licensee's records do not contain information reflecting that the patron presenting the check has signed a self-exclusion form or self-restricted access to check cashing for the time period of the exclusion or restriction,

(B) Cashing such check is not prohibited,

(C) Cashing such check conforms to the cardroom business licensee's approval process,

(D) The check is for a specific amount and within the patron's established check cashing amount limit, and, in the case of a personal check, includes the current date, and,

(E) In the case of a third party check, the check is endorsed over to the gambling establishment.

(2) If personal checks, cashier's checks, or payroll checks are cashed, the cardroom business licensee or designated employee must examine and, if the patron is not approved for credit or check cashing, record an unexpired government-issued form of identification evidencing residence and bearing a photograph of the patron, such as a driver's license or passport. If the patron's identification information is already on file with the cardroom business licensee, then retrieval and examination of this identification file by the cardroom business licensee or designated employee will satisfy the provisions of this paragraph.

(3) Records of all returned checks must be maintained by the gambling establishment and must include, at a minimum, the following:

(A) Date on the check.

(B) Name of the customer presenting the check.

(C) Amount of the check.

(D) Date(s) the check was dishonored.

(E) Date(s) and amount(s) of any collection received on the check after being returned by a bank.

(4) If a check is dishonored, the person who proffered the check must be prohibited from cashing additional checks until the amount owed is paid in full, but may replace a dishonored check in accordance with the policies of the licensed gambling establishment.

(5) The cardroom business licensee must include written procedures for the collection of checks dishonored for non-sufficient funds (NSF), including a point in time that the NSF check will be written off as a bad debt.

(h) If a cardroom business licensee that cashes checks for a patron charges a check-cashing fee, the cardroom business licensee must obtain and maintain an unexpired California Department of Justice Check Cashing Permit pursuant to Civil Code section 1789.37.

(i) Checks accepted or credit instruments completed in accordance with this Article are valid and enforceable instruments.

(j) A licensed gambling establishment may not have an ATM (automatic teller machine or cash-or voucher-dispensing machine) accessible by an individual while physically seated at a gaming table, unless otherwise required under the Americans with Disabilities Act.

(k) ATMs must be configured to reject Electronic Benefit Transfer cards (EBTs) issued by the State of California or by any city, county, or city and county, therein.

Notes

Cal. Code Regs. Tit. 4, § 12388

1. New article 3 (section 12388) and section filed 3-10-2009; operative 7-8-2009 (Register 2009, No. 11).
2. Amendment filed 12-9-2009; operative 1-8-2010 (Register 2009, No. 50).
3. Amendment 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, 19840, 19841(g), 19841(o), 19841(q), 19901, 19905 and 19920, Business and Professions Code. Reference: Sections 19801, 19841(g), 19841(o), 19841(q), 19901, 19905 and 19920, Business and Professions Code.

1. New article 3 (section 12388) and section filed 3-10-2009; operative 7-8-2009 (Register 2009, No. 11).
2. Amendment filed 12-9-2009; operative 1-8-2010 (Register 2009, No. 50).
3. Amendment 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.