Senate Rules Committee advances Stacy Baxter to Senate floor after confirmation hearing

The Senate Rules Committee voted 5-0 on Jan. 29 to advance Stacy Baxter, a governorappointed nominee to the California Gambling Control Commission, to the full Senate for final confirmation following a public hearing and committee questions about the agency's regulatory role, a proposed advertising regulation and the status of the Gambling Control Fund.

Baxter, who told the committee she was appointed by Governor Gavin Newsom, said she is a career state regulator with 32 years of state service and nearly nine years as the executive director of the Bureau of Gambling Control before taking her current role. "It is simply an honor to be here before you today and to have been appointed by Governor Newsom to this position," Baxter said. She said she would "make decisions with an open mind, considering all stakeholder input and with facts and relevant laws and regulations as my guiding principles."

Committee members pressed Baxter on several topics that have drawn industry and tribal attention. Senators asked her to explain the split responsibilities between the Bureau of Gambling Control, which conducts investigations, and the Gambling Control Commission, which Baxter described as the adjudicatory, licensing and policy-making body that reviews Bureau findings to decide an applicant's suitability.

On proposed advertising rules, Baxter said the commission has a package under consideration that would define deceptive advertising, require problem-gambling language in certain ads and bar marketing that appeals to underage gamblers. She said the package will be released for a 45-day public comment period before it returns to the commissioners.

Senators also questioned Baxter about the size of the Gambling Control Fund and recent fee changes. Baxter said the apparent surplus largely reflects a recent $45,000,000 general-fund repayment and that the fund balance at the end of the last fiscal year stood at about a three-month reserve. "That amount is actually earmarked for current settlement negotiations to go back out to the industry," she said. She added the commission and DOJ had pursued fee restructuring and, during the COVID period, authorized a two-year fee waiver that affected reserves.

Lawmakers sought clarification about a 2023 memo Baxter issued as executive director restricting direct communications with commissioners on matters coming before the commission. Baxter said the memo did not bar all communications with commissioners; rather it directed stakeholders to communicate through staff so all commissioners receive the same information about matters that will come before them.

Several senators raised questions about SB 549 litigation and potential impacts on enforcement. Baxter said compliance and enforcement would be handled by the Bureau of Gambling Control and that the commission would not be directly altered by the litigation's outcome.

Public comment at the hearing included Jim Evans, a former Senate staffer and former chair of the Gambling Control Commission, who called Baxter "one of the most professional and public service oriented individuals I've ever met" and urged the committee to confirm her. The committee then voted to forward Baxter's nomination to the Senate floor for final consideration.

Votes at a glance

- Governors' appointees (items 2B, 2C, 2D, 2F, 2G, 2H, 2I): Motion to approve passed 5-0 (Senators Maguire, Grove, Gonzales, Jones, Laird voted aye).

- Item 2E (governor's appointee considered separately): Motion passed 3-2 (Maguire, Gonzales, Laird aye; Grove, Jones no).

- Bill referrals (agenda item 3): Motion to approve passed 5-0 (Maguire, Grove, Gonzales, Jones, Laird aye).

- Committee appointments and weekly schedule items: motions passed 5-0.

- Nomination of Stacy Baxter to the California Gambling Control Commission: motion to forward to the Senate floor passed 5-0 (Maguire, Grove, Gonzales, Jones, Laird voted to advance).

The committee concluded the public portion of its hearing and cleared the room to convene an executive session. The nomination will next appear on the Senate floor for a final confirmation vote.