BILL ANALYSIS Ó
AB 1418
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Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 1418 (Committee on Governmental Organization) - As
Introduced: March 21, 2011
SUBJECT : Gambling control: key employees.
SUMMARY : Clarifies and updates the definition of "key
employee" in the Gambling Control Act. Specifically, this bill :
1) Revises 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.
2) Deletes 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.
EXISTING LAW :
1) Existing law, the Gambling Control Act (Act), provides for
the licensure of certain individuals and establishments involved
in various gambling activities, and for the regulation of those
activities, by the CGCC.
2) Provides for the enforcement of those gambling activities by
Department of Justice (DOJ).
3) Makes it a crime for specified persons to fail to apply for
and obtain from CGCC, and to thereafter maintain, a valid key
employee license.
4) Defines "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, including, without limitation, pit bosses, shift
bosses, credit executives, cashier operations supervisors,
gambling operation managers and assistant managers, managers or
supervisors of security employees, or any other natural person
designated as a key employee by DOJ for reasons consistent with
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the policies of the Act.
FISCAL EFFECT : Unknown.
COMMENTS :
Background : The Act provides CGCC with jurisdiction over the
operation of gambling establishments in California. The Act
assigns CGCC the responsibility of assuring that gambling
licenses are not issued to, or held by, unqualified or
disqualified persons, or by persons whose operations are
conducted in a manner that is inimical to the public health,
safety, or welfare. The Act directs CGCC to issue licenses only
to those persons of good character, honesty and integrity, whose
prior activities, criminal record, if any; reputation, habits
and associations do not pose a threat to the public interest of
this state. DOJ conducts background and field investigations
and enforces the provisions of the Act in this regard.
Purpose of the bill : AB 1418 changes the definition of key
employee to include persons who are empowered to make
discretionary decisions with regard to gambling operations
rather than persons who are empowered to make discretionary
decisions that regulate gambling operations. This change
provides CGCC the authority to license those persons that have
control over gambling operations in card clubs, and, further,
the state and local governments regulate gambling, not the card
clubs.
This bill also deletes the term "pit bosses" and "shift bosses"
from the definition of key employee and replaces it with "shift
managers". The terms "pit bosses" and "shift bosses" are
generally used in Nevada casinos, not in card clubs which use
the term "shift managers".
Finally, AB 1418 includes surveillance managers or supervisors
in the definition of key employee. These are persons who play a
key role in the security, oversight, and in some cases,
investigations of card club activities.
Prior legislation : AB 293 (Mendoza), Chapter 233, Statutes of
2009. This bill, among other things, allows limited liability
companies (LLCs) and its officers, managers, members, or owners
to be eligible for a state gambling license; imposes on all
partnerships and LLCs the same licensing requirements that are
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applicable to limited partnerships and provides that a
partnership, instead of being formed under the laws of the state
to be eligible for a gambling license must be registered in the
state and provide specific supplemental information; and
requires CGCC to develop procedures to allow for the continuous
operation of licensed gambling establishments in cases
including the death or incapacity of a licensee.
SB 1678 (Florez), 2007-2008 Legislative Session. Would have
added to the definition of "license" any other license issued by
the CGCC pursuant to the Gambling Control Act or by a regulation
adopted pursuant to that Act. Gutted and amended in the
Assembly. Held in Assembly Rules Committee.
SB 730 (Florez), Chapter 438, Statutes of 2007. Makes various
changes to the licensing and regulatory processes related to key
employees for gambling establishments under the Gambling Control
Act (Act).
AB 1753 (Governmental Organization Committee), Chapter 546,
Statutes of 2005. Deletes the residency requirement for key
employees of California card rooms. Revises the penalties for
violations of California's gambling related laws.
SB 8 (Lockyer), Chapter 867, Statutes of 1997. Repealed the
Gaming Regulation Act, and instead enacted the Gambling Control
Act, which provided for DOJ to investigate and enforce
controlled gambling in the state. It also establishes CGCC to
regulate gambling in this state to issue, suspend, or revoke
gambling licenses.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
AB 1418
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