BILL ANALYSIS Ó
Bill No: SB
162
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Bill Analysis
SB 162 Author: Anderson
Amended: March 29, 2011
Hearing Date: April 12, 2011
Consultant: Paul Donahue
SUBJECT : Gambling Control Commission: Gaming Advisory
Committee
SUMMARY : Requires a notice of violation regarding a
noncriminal violation of the Gambling Control Act to be
filed on or before 12 months after the violation occurs.
Prohibits a gambling establishment, its owners, or
employees from being liable for a violation of the act by a
3rd-party provider of propositional player services or an
employee of that 3rd party.
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) Authorizes a licensed gambling enterprise to contract
with a third party for the purpose of providing proposition
player services at a gambling establishment under specified
conditions. (Bus. & Prof. Code § 19984)
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4) Requires DOJ to make appropriate investigations whether
there has been any violation of the Gambling Control Act or
any regulations adopted under the Act, and authorizes the
DOJ to suspend a license or permit.
5) Establishes a 10-member Gaming Policy Advisory
Committee, composed of representatives of controlled
gambling licensees and members of the general public in
equal numbers.
6) Requires the executive director of the Commission to
periodically convene the Advisory Committee to discuss
recommended controlled gambling regulatory policy.
This bill :
1) Requires a notice of violation from the DOJ pertaining
to non-criminal violation of the Gambling Control Act to be
filed on or before 12 months after the violation occurs.
2) Prohibits a gambling establishment, its owners, or
employees from being liable for a violation of the Gambling
Control Act by a third-party provider of propositional
player services or an employee of that third party.
3) Deletes the requirement that the Gaming Policy Advisory
Committee be comprised of 10 members, and requires that at
least 3 members of the Committee be members of the general
public.
4) Requires the Gaming Policy Advisory Committee to meet at
least twice a year.
5) Requires the Commission and the DOJ to consult with the
Gaming Policy Advisory Committee on recommended proposed
regulations, and requires the Committee to present its
recommendations to the DOJ.
COMMENTS :
1) Purpose and intent : According to the author, this
measure seeks to revitalize the Gaming Policy Advisory
Committee by giving the chair of the Gambling Control
Commission the ability to make more appointments. In
addition, there is currently no statute of limitations
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Page 3
within which an alleged violation of the Gambling Control
Act must be charged. Some allegations have been filed
recently alleging violations that have occurred in 2007,
2008 and reportedly even as far back as 2002. It is very
difficult defending an allegation years after an event.
2) Third-party providers of proposition player services : A
proposition player, or prop player, is a card room employee
or agent who is paid a predetermined amount to play in
shorthanded games but whose bankroll is not supplied by the
house. A prop player is a house player who risks one's own
money and is compensated based on amount of play or time
played.
The purpose of a proposition player is to ensure a
sufficient number of players in a given game so that it can
begin or continue. They are typically not permitted to
stay at a full table. Some card rooms require them to be
readily identified, some permit silent props, and others
disallow their use entirely. Proposition players are
typically paid an hourly rate, but in some instances the
pay is based on the number of hands played.
Under California rules, a third-party provider of
proposition player services is a business that provides
services in and to a gambling establishment under a
written, oral, or implied agreement with the gambling
establishment. The services provided include play as a
participant in any controlled game that has a rotating
player-dealer position as permitted by Penal Code § 330.11.
The amendments to existing law contained in this bill
appear to be advanced in order to clarify that the owners
or employees of a gambling establishment are not legally
responsible for a violation of the Gambling Control Act
committed by a propositional player service provider or its
employees.
3) Technical amendments :
a) Change the word "propositional" to "proposition"
b) On page 3, rewrite sentence 1 of proposed SEC. 3 of the
bill as indicated below:
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Page 4
"The commission shall not take enforcement action against a
gambling establishment, its owners, or employees for a
violation of this chapter committed by a third-party
provider of propositional player services or an employee of
that third party."
SUPPORT:
Commerce Club
Hollywood Park Casino
Lucky Chances
Lucky Derby
Village Club
OPPOSE: None on file
FISCAL COMMITTEE: Yes
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