BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 374| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ CONSENT Bill No: SB 374 Author: Strickland (R) Amended: As introduced Vote: 21 SENATE GOVERNMENTAL ORGANIZATION COMM : 12-0, 04/26/11 AYES: Wright, Anderson, Berryhill, Cannella, Corbett, De León, Evans, Hernandez, Padilla, Strickland, Wyland, Yee NO VOTE RECORDED: Calderon SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 SUBJECT : Gambling control: key employee licenses SOURCE : Author DIGEST : This bill authorizes a key employee in a gambling establishment with a valid personal portable license to work as a key employee in any key employee position in more than one gambling establishment. ANALYSIS : Existing law: 1.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. 2.Requires certain people employed in the operation of a CONTINUED SB 374 Page 2 gambling enterprise, known as "key employees," to apply for and obtain a key employee license. 3.Entitles the holder of a key employee license to work in any key employee position at any gambling establishment, provided that the key employee terminates employment with one gambling establishment before commencing work for another. 4.Requires the Gambling Control Commission to establish a program for portable personal licenses for key employees. This bill authorizes 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. Comments Prior to 1998, California's gambling industry was essentially unregulated. In 1984, the Legislature enacted the Gaming Registration Act, which required the Attorney General's office to provide uniform, minimum regulation of California's card rooms. However, the scope of the Attorney General's authority was extremely limited and funding was inadequate. In 1997 the Legislature enacted the Gambling Control Act (Chapter 867, Statutes of 1997), which created a comprehensive scheme for statewide regulation of legal gambling under a bifurcated system of administration involving the Division of Gambling Control within the Attorney General's Office and the five-member California Gambling Control Commission appointed by the governor. The commission is authorized to establish minimum regulatory standards for the gambling industry, and ensure that state gambling licenses are not issued to or held by unsuitable or unqualified individuals. The Department of Justice is responsible for conducting background investigations into applicants seeking key employee licenses. The Department of Justice assesses the integrity of the applicant, general character, reputation, habits, and financial and criminal history. CONTINUED SB 374 Page 3 According to the author's office, existing law only allows a key employee to work at one gambling establishment at a time. Thus, individuals may not work at multiple gambling sites even though the sites may have the same owner. The author wants to remove this statutory restriction to assist these employees, who may not be able to work full-time at one location. FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No PQ:nl 5/11/11 Senate Floor Analyses SUPPORT/OPPOSITION: NONE RECEIVED **** END **** CONTINUED