BILL ANALYSIS Ó
Bill No: AB
1418
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Bill Analysis
AB 1418 Author: Assembly Governmental Organization
Committee
As Introduced: March 21, 2011
Hearing Date: June 14, 2011
Consultant: Paul Donahue
SUBJECT : Gambling control; Key employees
SUMMARY : Clarifies and updates the definition of "key
employee" in the Gambling Control Act.
Existing law :
1) The Gambling Control Act (Bus. & Prof. Code § 19800 et
seq.) establishes a regulatory framework for gaming in
California, creating the California Gambling Control
Commission (Commission) with the authority to approve,
deny, revoke, or suspend gambling licenses and permits for
reasonable cause.
2) Establishes the Division of Gambling Control within the
Department of Justice (DOJ) to investigate and enforce
controlled gambling activities in the state. The Attorney
General has established the Bureau of Gambling Control
within DOJ.
3) Requires certain people employed in the operation of a
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gambling enterprise, known as "key employees,"<1> to apply
for and obtain a key employee license.
4) Entitles the holder of a key employee license to work in
any key employee position at any gambling establishment, so
long as the key employee terminates employment with one
gambling establishment before commencing work for another.
5) Requires the Gambling Control Commission to establish a
program for portable personal licenses for key employees.
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.
COMMENTS :
1) Background : The Act provides the Commission with
jurisdiction over the operation of gambling establishments
in California. The Act charges the Commission with
responsibility for 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 the Commission to issue licenses only to
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<1> Business and Professions Code § 19805 defines a "key
employee" to mean 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, etc.
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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.
2) 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 the Commission with the authority to license those
persons that have control over gambling operations in card
clubs. Furthermore, 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 more commonly 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
individuals play a key role in the security, oversight, and
investigations of card club activities.
3) Related legislation :
SB 374 (Strickland, 2011) would authorize a key employee
with a valid personal portable license to work as a key
employee in any key employee position in more than one
gambling establishment. (Pending in Assembly G.O.
Committee)
AB 293 (Mendoza, Stats. 2009, ch. 233) Among other things,
permits limited liability companies (LLCs) and its
officers, managers, members, or owners to be eligible for a
state gambling license.
SB 730 (Florez, Stats. 2008, ch. 438) requires the
California Gambling Control Commission to establish a
program for portable personal licenses for key employees.
AB 1620 (Klehs, Stats. 2006, ch. 721) changed the license
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fee structure for card rooms licensed by the Gambling
Control Commission.
SB 1198 (Florez, Stats. 2006, ch. 181) removed wagering
limits from the list of items that are considered to be an
"expansion of gambling" pursuant to the current moratorium
on the expansion of gambling in local cities and counties.
AB 1753 (G.O. Committee, Stats. 2006, ch. 546) removed the
residency requirement for key employees of California card
rooms. The bill also revised penalties for violations of
state gambling laws, and enacted related provisions.
SB 8 (Lockyer, Stats. 1997, ch. 867) repealed the Gaming
Registration Act and enacted the Gambling Control Act,
under which the Department of Justice investigates and
enforces controlled gambling in the state. It also
established the Gambling Control Commission to among other
things issue, suspend, or revoke gambling licenses.
SUPPORT: None on file
OPPOSE: None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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