BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1188|
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THIRD READING
Bill No: AB 1188
Author: Gipson (D)
Introduced:2/27/15
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 13-0, 7/14/15
AYES: Hall, Berryhill, Block, Gaines, Galgiani, Glazer,
Hernandez, Hill, Hueso, Lara, McGuire, Runner, Vidak
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 77-0, 4/30/15 (Consent) - See last page for
vote
SUBJECT: Gambling: key employee
SOURCE: Author
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
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Page 2
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
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
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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
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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified8/18/15)
None received
OPPOSITION: (Verified8/18/15)
AB 1188
Page 4
None received
ASSEMBLY FLOOR: 77-0, 4/30/15
AYES: Achadjian, Alejo, Travis Allen, Baker, Bigelow, Bloom,
Bonilla, Bonta, Brough, Brown, Burke, Calderon, Chang, Chau,
Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd,
Eggman, Frazier, Beth Gaines, Gallagher, Cristina Garcia,
Eduardo Garcia, Gatto, Gipson, Gonzalez, Gordon, Gray, Grove,
Hadley, Harper, Roger Hernández, Holden, Irwin, Jones,
Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,
Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,
Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Perea,
Quirk, Rendon, Ridley-Thomas, Rodriguez, Salas, Santiago,
Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber,
Wilk, Williams, Wood, Atkins
NO VOTE RECORDED: Campos, Chávez, Gomez
Prepared by:Felipe Lopez / G.O. / (916) 651-1530
8/18/15 17:03:34
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