BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
                              Senator Isadore Hall, III
                                        Chair
                                2015 - 2016  Regular 

          Bill No:           AB 903           Hearing Date:    7/14/2015
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          |Author:    |Cristina Garcia                                      |
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          |Version:   |4/23/2015    Amended                                 |
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          |Urgency:   |No                     |Fiscal:      |No              |
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          |Consultant:|Felipe Lopez                                         |
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          SUBJECT: Gambling Control Act


            DIGEST:    This bill permits a person between 18 and 21 years of  
          age to work in a gambling establishment in a classification that  
          entails providing services on and off the gaming floor that is  
          not involved in play of any controlled game.

          ANALYSIS:
          
          Existing law:
          
          1)Provides, under the Gambling Control Act (Act), for the  
            licensure and regulation of various legalized gambling  
            activities and establishments by the California Gambling  
            Control Commission (CGCC) and the investigation and  
            enforcement of those activities and establishments by the  
            Department of Justice (DOJ).

          2)Prohibits a person under 21 years of age from being eligible  
            for a work permit in a gambling establishment.

          3)Prohibits a person under 21 years of age from entering the  
            premises of a licensing establishment, except the following:

             a)   An area physically separated from any gambling area for  
               the exclusive purpose of dining.  Any place wherein food or  
               beverages are dispensed primarily by vending machines shall  
               not constitute a place for dining.







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             b)   Restrooms.
             c)   A supervised room that is physically separated from any  
               gambling area and used primarily for the purpose of  
               entertainment or recreation.
             d)   A designated pathway to reach any of the area where a  
               person under 21 years of age is allowed to enter.  To the  
               extent that the designated pathway requires an individual  
               to pass through the gaming floor, all person under 21 years  
               of age shall be accompanied by a person over 21 years of  
               age or be in the presence of a gambling establishment  
               employee over 21 years of age. 

          This bill:

          1)Permits a person between 18 and 21 years of age to work in a  
            gambling establishment, provided that he or she shall not work  
            as a dealer, floor personnel, or any other employment  
            classification that exclusively involves working on the floor  
            of the gambling establishment. 

          2)Provides that a person between 18-21 years of age may be  
            employed in job classifications that entail providing services  
            on and off the gaming floor that are not involved in play of  
            any controlled game.

          Background

          Purpose of the bill.  According to the author, "while the  
          economy has improved, California's current unemployment rate is  
          6.7%.  Over 1.2 million Californians remain unemployed with some  
          cities having double-digit unemployment numbers.  There are many  
          cities with higher unemployment rates than the State's.  The  
          City of Commerce has a 10.6% unemployment rate, while the City  
          of McFarland has a 17% unemployment rate.  This legislation will  
          provide an employment opportunity for Californians between 18-21  
          years of age."

          Gambling Control Act.  The Act provides the CGCC with  
          jurisdiction over the operation of gambling establishments in  
          California. The Act requires every owner, lessee, or employee of  
          a gambling establishment to obtain and maintain a valid state  
          gambling license.  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  








          AB 903 (Cristina Garcia)                          Page 3 of ?
          
          
          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.

          The Act prohibits a person under 21 years of age from being  
          eligible for a work permit in a gambling establishment.  The Act  
          also prohibits an individual who is under 21 years of age from  
          entering the premises of a licensed gambling establishment with  
          certain exemptions.  In addition, the Act prohibits any person  
          under 21 years of age from loitering in a gaming area. 

          Work Permits.  The Act requires that all individuals who are  
          employed as gambling enterprise employees hold a valid work  
          permit.  The work permit is issued by the local jurisdiction.   
          An application for a work permit shall be made to the CGCC when  
          the local licensing authority does not have a work permit  
          process in place, or where a locally issued work permit is not  
          required by the licensing authority of a city, county, or city  
          and county

          Prior/Related Legislation

            AB 1188 (Gipson, 2015) revises the definition of "key employee"  
          to mean 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 Governmental Organization Committee)

          AB 293 (Mendoza, Chapter 233, Statutes of 2009) authorized,  
          among other things, a person between 18 and 21 years of age to  
          pass through a gambling floor.
                                                                      
          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.

          FISCAL EFFECT:                 Appropriation:  No    Fiscal  
          Com.:             No           Local:          No








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            SUPPORT:  

          Commerce Casino (Source)
          Bicycle Hotel & Casino
          City of Commerce
          Hawaiian Gardens Casino

          OPPOSITION:

          California Coalition Against Gambling Expansion

          ARGUMENTS IN SUPPORT:    According to supporters of the bill,  
          "AB 903 would permit a person between 18 and 21 years of age to  
          work in a gambling establishment provided that he or she does  
          not work as a dealer, floor person, or any other employment  
          classification that exclusively involves working on the floor of  
          the gambling establishment.  This bill will create employment  
          opportunity for individuals in this age range to work as  
          secretaries, waiters or waitresses, maintenance personnel and  
          other ancillary services." 

          ARGUMENTS IN OPPOSITION:    According to the California  
          Coalition Against Gambling Expansion, "when tribal casinos first  
          started in California, and some initially permitted 18 year old  
          gamblers, there was a public outcry, resulting in them raising  
          the minimum age to 21.  Now this measure comes along proposing  
          to reduce the age of workers allowed to work on the gambling  
          floor from 21 to 18 at a gambling establishment licensed by the  
          CGCC.  What will be next, removing the current restrictions on  
          patrons under 21 on the gambling floor?"