BILL ANALYSIS �
AB 820
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Date of Hearing: April 10, 2013
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 820 (Hall) - As Introduced: February 21, 2013
SUBJECT : Gaming: Gambling Control Act
SUMMARY : Changes several definitions within the Gambling
Control Act. Specifically, this bill :
1)Revises the definition of a "key employee" to any person
employed in the operation of a gambling enterprise in a
supervisory capacity or empowered to make discretionary
decisions with regard to the gambling operations.
2)Adds surveillance managers and supervisors to the definition
of "key employee" for licensing purposes.
3)Deletes the term "pit boss" and replaces the term "shift boss"
to "shift manager."
EXISTING LAW
1)The Gambling Control Act (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
(CGCC).
2)Provides for the enforcement of those gambling activities by
the Department of Justice (DOJ).
3)Makes it a crime for specified persons to fail to apply for
and obtain from the CGCC, and to thereafter maintain, a valid
Key Employee License.
4)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, without limitation, 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 the
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DOJ for reasons consistent with the policies of the Act.
FISCAL EFFECT : Unknown
COMMENTS :
Background : The Act provides the CGCC with jurisdiction over
the operation of gambling establishments in California. The Act
assigns the CGCC the responsibility of 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 harmful to the public health,
safety, or welfare. The Act directs the CGCC 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. The DOJ conducts background and field
investigations and enforces the provisions of the Act in this
regard.
Purpose of the bill : 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.
This change gives the CGCC the authority to license those
persons that have control over gambling operations in card
clubs, and, further, the state and local governments regulate
gambling, not the card clubs.
AB 820 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
generally used in Nevada casinos, not in card clubs which use
the term "shift managers".
Finally, this bill includes surveillance managers or supervisors
in the definition of key employee. These are persons who play a
key role in the security, oversight, and in some cases,
investigations of card club activities.
Prior legislation :
AB 2526 (Hall), 2011-2012 Legislative Session. Similar to this
measure, AB 2526 (Hall) would have revised several definitions
within the Act. Specifically the bill revised the definition of
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a "key employee", added surveillance managers and supervisors to
the definition of "key employee" for licensing purposes and
deleted the term "pit boss" and replaced the term "shift boss"
to "shift manager." (Held on the inactive file on the Senate
Floor)
AB 293 (Mendoza), Chapter 233, Statutes of 2009. This bill,
among other things, allows limited liability companies (LLCs)
and its officers, managers, members, or owners to be eligible
for a state gambling license; imposes on all partnerships and
LLCs the same licensing requirements that are applicable to
limited partnerships and provides that a partnership, instead of
being formed under the laws of the state to be eligible for a
gambling license must be registered in the state and provide
specific supplemental information; and requires the CGCC to
develop procedures to allow for the continuous operation of
licensed gambling establishments in cases including the death or
incapacity of a licensee.
SB 1678 (Florez), 2007-2008 Legislative Session. Would have
added to the definition of "license" any other license issued by
the CGCC pursuant to the Act or by a regulation adopted pursuant
to the Act. Gutted and amended in the Assembly. (Held in
Assembly Rules Committee)
SB 730 (Florez), Chapter 438, Statutes of 2007. Makes various
changes to the licensing and regulatory processes related to key
employees for gambling establishments under the Act.
AB 1753 (Governmental Organization Committee), Chapter 546,
Statutes of 2005. Deletes the residency requirement for key
employees of California card rooms. Revises the penalties for
violations of California's gambling related laws.
SB 8 (Lockyer), Chapter 867, Statutes of 1997. Repealed the
Gaming Regulation Act, and instead enacted the Act, which
provided for DOJ to investigate and enforce controlled gambling
in the state. It also establishes the CGCC to regulate gambling
in this state to issue, suspend, or revoke gambling licenses.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
AB 820
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Opposition
None on file
Analysis Prepared by : Felipe Lopez / G. O. / (916) 319-2531