BILL NUMBER: AB 1418	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 31, 2011

INTRODUCED BY    Committee on Governmental Organization
  (   Assembly Members Hall
(Chair), Nestande (Vice Chair), Blumenfield, Chesbro, Galgiani,
Garrick, Gatto, Hill, Jeffries, Ma, V. Manuel Pérez, Silva, and
Torres   )   Assembly Member  
Hall 

                        MARCH 21, 2011

    An act to amend Section 19805 of the Business and
Professions Code, relating to gambling.   An act to
repeal and add Section 12012.551 of the Government Code, relating to
tribal gaming, and declaring the urgency thereof, to take effect
immediately. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1418, as amended,  Committee on Governmental
Organization   Hall  .  Gambling control:
key employees.   Tribal gaming: compact ratification.
 
   Existing federal law, the Indian Gaming Regulatory Act, provides
for the negotiation and execution of tribal-state gaming compacts for
the purpose of authorizing certain types of gaming on Indian lands
within a state. The California Constitution authorizes the Governor
to negotiate and conclude compacts, subject to ratification by the
Legislature. Existing law expressly ratifies a number of tribal-state
gaming compacts, and amendments of tribal-state gaming compacts,
between the State of California and specified Indian tribes. Existing
law ratifies the tribal-state gaming compact entered into between
the State of California and the Pinoleville Pomo Nation executed on
March 9, 2009.  
   This bill would repeal those provisions ratifying the tribal-state
gaming compact entered into between the State of California and
Pinoleville Pomo Nation, executed on March 9, 2009. The bill would
instead ratify the tribal-state gaming compact entered into between
the State of California and the Pinoleville Pomo Nation, executed on
August 8, 2011.  
   Existing law, the California Environmental Quality Act (CEQA),
requires a lead agency to prepare, or cause to be prepared, and
certify completion of, an environmental impact report on a project,
as defined, that it proposes to carry out or approve that may have a
significant effect on the environment, as defined, or to adopt a
negative declaration if it finds that the project will not have that
effect.  
   This bill would provide that, in deference to tribal sovereignty,
certain actions shall not be deemed projects for purposes of CEQA. By
imposing additional duties on a lead agency with regard to the
implementation of CEQA requirements, this bill would impose a
state-mandated local program.  
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   This bill would declare that it is to take effect immediately as
an urgency statute.  
   The Gambling Control Act provides for the licensure of certain
individuals and establishments involved in various gambling
activities, and for the regulation of those activities, by the
California Gambling Control Commission. Existing law requires certain
persons employed in the operation of a gambling enterprise, known as
key employees, to apply for and obtain a key employee license.
Existing law defines a key employee as any natural person employed in
the operation of a gambling enterprise in a supervisory capacity or
empowered to make discretionary decisions that regulate gambling
operations, as specified.  
   This bill would revise the definition of key employee as any
natural person employed in the operation of a gambling enterprise in
a supervisory capacity or empowered to make discretionary decisions
with regard to gambling operations, delete the term "pit boss" in
this context, change the term "shift boss" to "shift manager," and
specifically include surveillance managers or supervisors within the
definition. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee: yes. State-mandated local program:  no
  yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 12012.551 of the  
Government Code   is repealed.  
   12012.551.  (a) The tribal-state gaming compact entered into in
accordance with the Indian Gaming Regulatory Act of 1988 (18 U.S.C.
Secs. 1166 to 1168, incl., and 25 U.S.C. Sec. 2701 et seq.) between
the State of California and the Pinoleville Pomo Nation, executed on
March 10, 2009, is hereby ratified.
   (b) (1) In deference to tribal sovereignty, none of the following
shall be deemed a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code):
   (A) The execution of an amendment to the tribal-state gaming
compact ratified by this section.
   (B) The execution of the tribal-state gaming compact ratified by
this section.
   (C) The execution of an intergovernmental agreement between a
tribe and a county or city government negotiated pursuant to the
express authority of, or as expressly referenced in, the tribal-state
gaming compact ratified by this section.
   (D) The execution of an intergovernmental agreement between a
tribe and the California Department of Transportation negotiated
pursuant to the express authority of, or as expressly referenced in,
the tribal-state gaming compact ratified by this section.
   (E) The on-reservation impacts of compliance with the terms of the
tribal-state gaming compact ratified by this section.
   (F) The sale of compact assets, as defined in subdivision (a) of
Section 63048.6, or the creation of the special purpose trust
established pursuant to Section 63048.65.
   (2) Except as expressly provided herein, nothing in this
subdivision shall be construed to exempt a city, county, or city and
county, or the California Department of Transportation, from the
requirements of the California Environmental Quality Act.
   (c) Revenue contributions made to the state by the tribe pursuant
to the tribal-state gaming compact ratified by this section shall be
deposited in the General Fund, except as otherwise provided by the
compact or by a statute directing that a portion of the revenue
contributions be deposited in a special fund. 
   SEC. 2.    Section 12012.551 is added to the 
 Government Code   , to read:  
   12012.551.  (a) The tribal-state gaming compact entered into in
accordance with the Indian Gaming Regulatory Act of 1988 (18 U.S.C.
Secs. 1166 to 1168, incl., and 25 U.S.C. Sec. 2701 et seq.) between
the State of California and the Pinoleville Pomo Nation, executed on
August 8, 2011, is hereby ratified.
   (b) (1) In deference to tribal sovereignty, none of the following
shall be deemed a project for purposes of the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code):
   (A) The execution of an amendment to the tribal-state gaming
compact ratified by this section.
   (B) The execution of the tribal-state gaming compact ratified by
this section.
   (C) The execution of an intergovernmental agreement between a
tribe and a county or city government negotiated pursuant to the
express authority of, or as expressly referenced in, the tribal-state
gaming compact ratified by this section.
   (D) The execution of an intergovernmental agreement between a
tribe and the Department of Transportation negotiated pursuant to the
express authority of, or as expressly referenced in, the
tribal-state gaming compact ratified by this section.
   (E) The on-reservation impacts of compliance with the terms of the
tribal-state gaming compact ratified by this section.
   (F) The sale of compact assets, as defined in subdivision (a) of
Section 63048.6, or the creation of the special purpose trust
established pursuant to Section 63048.65.
   (2) Except as expressly provided herein, nothing in this
subdivision shall be construed to exempt a city, county, or city and
county, or the Department of Transportation, from the requirements of
the California Environmental Quality Act. 
   SEC. 3.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because a local agency or school district has the
authority to levy service charges, fees, or assessments sufficient to
pay for the program or level of service mandated by this act, within
the meaning of Section 17556 of the Government Code. 
   SEC. 4.    This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
 
   In order to allow the revenues from this act to be eligible for
revenue sharing at the earliest possible time to address some of the
state's pressing budget issues, it is necessary that this act take
effect immediately.  
  SECTION 1.    Section 19805 of the Business and
Professions Code is amended to read:
   19805.  As used in this chapter, the following definitions shall
apply:
   (a) "Affiliate" means a person who, directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under
common control with, a specified person.
   (b) "Applicant" means any person who has applied for, or is about
to apply for, a state gambling license, a key employee license, a
registration, a finding of suitability, a work permit, a manufacturer'
s or distributor's license, or an approval of any act or transaction
for which the approval or authorization of the commission or
department is required or permitted under this chapter.
   (c) "Banking game" or "banked game" does not include a controlled
game if the published rules of the game feature a player-dealer
position and provide that this position must be continuously and
systematically rotated amongst each of the participants during the
play of the game, ensure that the player-dealer is able to win or
lose only a fixed and limited wager during the play of the game, and
preclude the house, another entity, a player, or an observer from
maintaining or operating as a bank during the course of the game. For
purposes of this section, it is not the intent of the Legislature to
mandate acceptance of the deal by every player if the department
finds that the rules of the game render the maintenance of or
operation of a bank impossible by other means. The house shall not
occupy the player-dealer position.
   (d) "Chief" means the head of the entity within the department
that is responsible for fulfilling the obligations imposed upon the
department by this chapter.
   (e) "Commission" means the California Gambling Control Commission.

   (f) "Controlled gambling" means to deal, operate, carry on,
conduct, maintain, or expose for play any controlled game.
   (g) "Controlled game" means any controlled game, as defined by
subdivision (e) of Section 337j of the Penal Code.
   (h) "Department" means the Department of Justice.
   (i) "Director" means any director of a corporation or any person
performing similar functions with respect to any organization.
   (j) "Finding of suitability" means a finding that a person meets
the qualification criteria described in subdivisions (a) and (b) of
Section 19857, and that the person would not be disqualified from
holding a state gambling license on any of the grounds specified in
Section 19859.
   (k) "Game" and "gambling game" means any controlled game.
   (l) "Gambling" means to deal, operate, carry on, conduct,
maintain, or expose for play any controlled game.
   (m) "Gambling enterprise" means a natural person or an entity,
whether individual, corporate, or otherwise, that conducts a gambling
operation and that by virtue thereof is required to hold a state
gambling license under this chapter.
   (n) "Gambling enterprise employee" means any natural person
employed in the operation of a gambling enterprise, including,
without limitation, dealers, floor personnel, security employees,
countroom personnel, cage personnel, collection personnel,
surveillance personnel, data-processing personnel, appropriate
maintenance personnel, waiters and waitresses, and secretaries, or
any other natural person whose employment duties require or authorize
access to restricted gambling establishment areas.
   (o) "Gambling establishment," "establishment," or "licensed
premises," except as otherwise defined in Section 19812, means one or
more rooms where any controlled gambling or activity directly
related thereto occurs.
   (p) "Gambling license" or "state gambling license" means any
license issued by the state that authorizes the person named therein
to conduct a gambling operation.
   (q) "Gambling operation" means exposing for play one or more
controlled games that are dealt, operated, carried on, conducted, or
maintained for commercial gain.
   (r) "Gross revenue" means the total of all compensation received
for conducting any controlled game, and includes interest received in
payment for credit extended by an owner licensee to a patron for
purposes of gambling, except as provided by regulation.
   (s) "Hours of operation" means the period during which a gambling
establishment is open to conduct the play of controlled games within
a 24-hour period. In determining whether there has been expansion of
gambling relating to "hours of operation," the department shall
consider the hours in the day when the local ordinance permitted the
gambling establishment to be open for business on January 1, 1996,
and compare the current ordinance and the hours during which the
gambling establishment may be open for business. The fact that the
ordinance was amended to permit gambling on a day, when gambling was
not permitted on January 1, 1996, shall not be considered in
determining whether there has been gambling in excess of that
permitted by Section 19961.
   (t) "House" means the gambling enterprise, and any owner,
shareholder, partner, key employee, or landlord thereof.
   (u) "Independent agent," except as provided by regulation, means
any person who does either of the following:
   (1) Collects debt evidenced by a credit instrument.
   (2) Contracts with an owner licensee, or an affiliate thereof, to
provide services consisting of arranging transportation or lodging
for guests at a gambling establishment.
   (v) "Initial license" means the license first issued to a person
authorizing that person to commence the activities authorized by that
license.
   (w) "Institutional investor" means any retirement fund
administered by a public agency for the exclusive benefit of federal,
state, or local public employees, any investment company registered
under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et
seq.), any collective investment trust organized by banks under Part
Nine of the Rules of the Comptroller of the Currency, any closed-end
investment trust, any chartered or licensed life insurance company or
property and casualty insurance company, any banking and other
chartered or licensed lending institution, any investment advisor
registered under the Investment Advisors Act of 1940 (15 U.S.C. Sec.
80b-1 et seq.) acting in that capacity, and other persons as the
commission may determine for reasons consistent with the policies of
this chapter.
   (x) "Key employee" means any natural person employed in the
operation of a gambling enterprise in a supervisory capacity or
empowered to make discretionary decisions with regard to gambling
operations, including, without limitation, shift managers, credit
executives, cashier operations supervisors, gambling operation
managers and assistant managers, managers or supervisors of security
employees, surveillance managers or supervisors, or any other natural
person designated as a key employee by the department for reasons
consistent with the policies of this chapter.
   (y) "Key employee license" means a state license authorizing the
holder to be employed as a key employee.
   (z) "License" means a gambling license, key employee license, or
any other license issued by the commission pursuant to this chapter
or regulations adopted pursuant to this chapter.
   (aa) "Licensed gambling establishment" means the gambling premises
encompassed by a state gambling license.
   (ab) "Limited partnership" means a partnership formed by two or
more persons having as members one or more general partners and one
or more limited partners.
   (ac) "Limited partnership interest" means the right of a general
or limited partner to any of the following:
   (1) To receive from a limited partnership any of the following:
   (A) A share of the revenue.
   (B) Any other compensation by way of income.
   (C) A return of any or all of his or her contribution to capital
of the limited partnership.
   (2) To exercise any of the rights provided under state law.
   (ad) "Owner licensee" means an owner of a gambling enterprise who
holds a state gambling license.
   (ae) "Person," unless otherwise indicated, includes a natural
person, corporation, partnership, limited partnership, trust, joint
venture, association, or any other business organization.
   (af) "Player" means a patron of a gambling establishment who
participates in a controlled game.
   (ag) "Player-dealer" and "controlled game featuring a
player-dealer position" refer to a position in a controlled game, as
defined by the approved rules for that game, in which seated player
participants are afforded the temporary opportunity to wager against
multiple players at the same table, provided that this position is
rotated amongst the other seated players in the game.
   (ah) "Publicly traded racing association" means a corporation
licensed to conduct horse racing and simulcast wagering pursuant to
Chapter 4 (commencing with Section 19400) whose stock is publicly
traded.
   (ai) "Qualified racing association" means a corporation licensed
to conduct horse racing and simulcast wagering pursuant to Chapter 4
(commencing with Section 19400) that is a wholly owned subsidiary of
a corporation whose stock is publicly traded.
   (aj) "Renewal license" means the license issued to the holder of
an initial license that authorizes the license to continue beyond the
expiration date of the initial license.
   (ak) "Work permit" means any card, certificate, or permit issued
by the commission, or by a county, city, or city and county, whether
denominated as a work permit, registration card, or otherwise,
authorizing the holder to be employed as a gambling enterprise
employee or to serve as an independent agent. A document issued by
any governmental authority for any employment other than gambling is
not a valid work permit for the purposes of this chapter.