Hoge’s Bill on Gambling Attacked : Legislation: Attorney general says the plan breaks a policy of keeping courts out of such debt disputes.

Atty. Gen. Daniel Lungren is opposed to a bill by a freshman San Fernando Valley area lawmaker because he contends it would overturn California’s longstanding policy against courts enforcing gaming debts and encourage gambling on credit.

The measure by Assemblyman William Hoge (R-Pasadena) would spell out that gambling debts owed to race tracks, satellite wagering facilities or card rooms are valid and enforceable in court.

“If you’ve incurred a debt it ought to be collectible,” said Hoge, whose district includes the Sunland-Tujunga area. “We ought to be responsible for our actions.”

The bill was approved by the Senate and is pending on the Assembly floor.

The measure is a reaction to a 1st District Court of Appeal ruling in May that held that a gambling debt owed to a Nevada casino is not enforceable in California.

In that case, a Redwood City man cashed checks totaling $22,000 at Caesars Tahoe casino. But after he lost the money at the gaming tables, he reportedly stopped payment. Caesars sued the man in San Mateo Municipal Court.

In the ruling, the court said: “The judiciary cannot protect pathological gamblers from themselves, but we can refuse to participate in their financial ruin.”

In fact, the state’s current policy apparently can be traced back to 1851 when the California Supreme Court ruled against the owner of a San Francisco gaming house who tried to collect $4,000 in gambling debts from a man who lost the money playing faro.

In a letter this week, Republican Lungren said Hoge’s bill, sponsored by the California Commerce Club card room, “represents another example of piecemeal legislation which seeks to expand the law to the full advantage of the card-room industry with no regard for the need of comprehensive regulation of card rooms.”

Lungren is calling for a moratorium on all legislation expanding the card-room industry in California until more sweeping reforms can be enacted.

But Hoge said he disagreed with the attorney general.

Hoge said that currently a bettor at the the State Fair in Sacramento could cash a check, the check could bounce and the fair would be out the money.

“I think they can and should be able to collect it,” said Hoge, adding that his proposal merely clarifies that interpretation of the law.

The measure also provides voters in cities with fuller disclosure regarding ballot measures that would legalize gambling.