BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 820
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          ASSEMBLY THIRD READING
          AB 820 (Hall)
          As Introduced  February 21, 2013
          Majority vote 

           GOVERNMENTAL ORGANIZATION 16-0  APPROPRIATIONS      17-0        
           
           ----------------------------------------------------------------- 
          |Ayes:|Hall, Nestande, Bigelow,  |Ayes:|Gatto, Harkey, Bigelow,   |
          |     |Chesbro, Cooley, Gray,    |     |Bocanegra, Bradford, Ian  |
          |     |Hagman,                   |     |Calderon, Campos,         |
          |     |Roger Hern�ndez, Jones,   |     |Donnelly, Eggman, Gomez,  |
          |     |Jones-Sawyer, Levine,     |     |Hall, Holden, Linder,     |
          |     |Medina, Perea, V. Manuel  |     |Pan, Quirk, Wagner, Weber |
          |     |P�rez, Salas, Waldron     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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  








                                                                  AB 820
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            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  
            DOJ for reasons consistent with the policies of the Act.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, there are no significant costs associated with this  
          legislation.


           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.  
           State and local governments regulate gambling, not the card  
          clubs.  This change gives the CGCC the authority to license  
          those persons that have actual control over gambling operations  
          in card clubs.

          This bill also deletes the term "pit bosses" and "shift bosses"  








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          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.  



           Analysis Prepared by  :    Felipe Lopez / G. O. / (916) 319-2531 



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