BILL ANALYSIS Ó
AB 1188
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Date of Hearing: April 8, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 1188
(Gipson) - As Introduced February 27, 2015
SUBJECT: Gambling: key employee
SUMMARY: Changes several definitions within the Gambling
Control Act (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."
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4) Makes relating technical change.
EXISTING LAW:
1) 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 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 DOJ for reasons consistent with
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the policies of the Act.
FISCAL EFFECT: Unknown
COMMENTS:
Background : The Gambling Control Act provides CGCC with
jurisdiction over the operation of gambling establishments in
California. The Act assigns 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 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. DOJ conducts background and
field investigations and enforces the provisions of the Act in
this regard.
Purpose of the bill : AB 1188 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 provides 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.
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AB 1188 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 terms
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 293 (Mendoza, Chapter 233, Statutes of
2009). Among other things, allows a limited liability
corporation (LLC) 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 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, 2007-08 Session). Would have added to the
definition of "license" any other license issued by the
Commission pursuant to the Act or by a regulation adopted
pursuant to that Act. The bill was held in the Assembly Rules
Committee.
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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 (Assembly 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 established the CGCC and empowered it to
regulate gambling in this state to issue, suspend, or revoke
gambling licenses.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
AB 1188
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Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531