BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 1418
Author: Assembly Governmental Organization Committee
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 12-0, 6/14/11
AYES: Wright, Anderson, Calderon, Cannella, Corbett, De
León, Evans, Hernandez, Padilla, Strickland, Wyland, Yee
NO VOTE RECORDED: Berryhill
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 5/26/11 (Consent) - See last page
for vote
SUBJECT : Gambling control: key employees
SOURCE : Author
DIGEST : This bill 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, and 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.
ANALYSIS :
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Existing law:
1. The Gambling Control Act establishes a regulatory
framework for gaming in California, creating the
California Gambling Control 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
gambling enterprise, known as "key employees," 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
The Gambling Control Act provides the Gambling Control
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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 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.
This bill 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.
Related Legislation
AB 293 (Mendoza), Chapter 233, Statutes of 2009, 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), Chapter 438, Statutes of 2008, required
the Gambling Control Commission to establish a program for
portable personal licenses for key employees.
AB 1620 (Klehs), Chapter 721, Statutes of 2006, changed the
license fee structure for card rooms licensed by the
Gambling Control Commission.
SB 1198 (Florez), Chapter 181, Statutes of 2006, 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.
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AB 1753 (Assembly Governmental Organization Committee),
Chapter 546, Statutes of 2006, 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), Chapter 867, Statutes of 1997, 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 75-0, 5/26/11 (Consent)
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Carter,
Chesbro, Conway, Cook, Dickinson, Donnelly, Eng, Feuer,
Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani,
Garrick, Gatto, Gordon, Grove, Hagman, Halderman, Hall,
Harkey, Hayashi, Roger Hernández, Hill, Huber, Hueso,
Huffman, Jeffries, Knight, Lara, Logue, Bonnie Lowenthal,
Ma, Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
Pérez, Portantino, Silva, Skinner, Smyth, Solorio,
Swanson, Torres, Valadao, Wagner, Wieckowski, Williams,
Yamada, John A. Pérez
NO VOTE RECORDED: Campos, Cedillo, Davis, Gorell, Jones
PQ:mw 8/28/11 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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