BILL ANALYSIS Ó
SB 374
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Date of Hearing: June 22, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
SB 374 (Strickland) - As Introduced: February 15, 2011
SENATE VOTE : 37-0
SUBJECT : Gambling control: key employee licenses
SUMMARY : 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.
EXISTING LAW :
1) The Gambling Control Act (Act) provides for the licensing of
certain individuals involved in various gambling activities.
The Act is administered by the California Gambling Control
Commission (CGCC) and enforced by the Department of Justice
(DOJ).
2) Requires individuals classified as key employees to apply
and obtain a key employee license.
3) 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, 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 the policies of
the Act.
4) Entitles the holder of a key employee license to work as a
key employee in any key employee position at any gambling
establishment, provided that the key employee terminates
employment with one gambling establishment before starting work
for another.
5) Requires the CGCC to establish a program for portable
personal licenses for key employees.
FISCAL EFFECT : According to the Senate Appropriations
SB 374
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Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS :
Background : In 1997, the California legislature enacted the
California Gambling Act, which created the Division of Gambling
Control in the Department of Justice and the California Gambling
Control Division. The Division and the Commission are jointly
responsible for ensuring that card club licenses, approvals, and
permits are not issued to unqualified persons. DOJ investigates
the background of applicants for gambling licenses, including
owners, directors, employees and vendors, and forwards its
findings to CGCC, which issues licenses. The Act directs the
CGCC to only issue licenses to those person off good character,
honesty, and integrity whose prior activities, reputation,
habits, etc. do not pose a threat to the public interest of the
state. According to CGCC there are currently 470 active key
employee licenses in California gambling establishments.
Purpose of the bill: According to the author, existing law only
allows a key employee licensee to work at one gambling
establishments at a time. Therefore, individuals may not work
at multiple gambling sites even though the sites may have the
same owner. During these tough economic times, the author
believes that removing this restriction will be beneficial to
those employees who may not be able to receive full-time work at
one location.
Related legislation :
AB 1418 (Governmental Organization Committee). 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. (Pending in Senate Appropriations)
Prior legislation:
SB 730 (Florez), Chapter 438, Statutes of 2007. Made various
changes to the licensing and regulatory process related to key
employees for gambling establishments under the Act.
AB 1753 (Governmental Organization Committee), Chapter 546,
Statues of 2005. Deletes the residency requirement for key
employees of California card rooms. The bill also revised the
penalties for violations of California's gambling related laws.
SB 374
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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 established the CGCC
to regulate gambling in this state.
REGISTERED SUPPORT / OPPOSITION :
Support
None on File
Opposition
None on File
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531