BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 1188 Hearing Date: 7/14/2015
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|Author: |Gipson |
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|Version: |2/27/2015 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Felipe Lopez |
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SUBJECT: Gambling: key employee
DIGEST: This bill 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.
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)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, among others, pit bosses,
shift bosses, credit executive, cashier operations
supervisors, gambling operation managers and assistant
managers, and managers or supervisors of security employees.
3)Makes it a crime for specified persons to fail to apply for
and obtain from the CGCC, and to thereafter maintain a valid
AB 1188 (Gipson) Page 2 of ?
Key Employee License.
This bill:
1)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.
2)Adds surveillance managers and supervisors to the definition
of "key employees" for licensing purposes.
3)Deletes the term "pit boss" and replaces the term "shift boss"
to "shift managers."
Background
Purpose of the bill. According to the author, "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 provides the CGCC the
authority to license those persons that have control over
gambling operations in card clubs."
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
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.
Prior/Related Legislation
AB 2526 (Hall, 2012) would have revised several definitions
AB 1188 (Gipson) Page 3 of ?
within the Act. Specifically the bill would have revised the
definition of 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) allowed 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, 2008) 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) made 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) deleted the residency requirement for key
employees of California card rooms and revised 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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
AB 1188 (Gipson) Page 4 of ?
None received
OPPOSITION:
None received