BILL ANALYSIS Ó
AB 1282
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Date of Hearing: May 6, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 1282
(Gray) - As Introduced February 27, 2015
SUBJECT: Gambling: Gambling Control Act
SUMMARY: Would revise the definition of "applicant" to no
longer include any person who is about to apply for a state
gambling license, or other licenses, permits, or approvals, as
specified.
EXISTING LAW:
1)The Gambling Control Act establishes a statutory framework 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 or commission), and enforcement by the
Department of Justice (DOJ).
2)Authorizes CGCC, for any cause deemed reasonable by the
commission, to deny any application for a license, permit, or
approval, to limit, condition, or restrict any license,
permit, or approval, or to impose any fine upon any person
licensed or approved.
3)Defines applicant as any person who has applied for, or is
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about to apply for, a state gambling license, or other
licenses, permits, or approvals, as specified.
FISCAL EFFECT: This bill is keyed non-fiscal by Legislative
Counsel.
COMMENTS:
Gambling Control Act : The 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 : There have been discrepancies pertaining
to what action by the applicant actually commences the licensing
process for determining when persons who play a key role in the
security, oversight, and in some cases, investigations of card
club activities has been triggered for the CGCC or DOJ to begin
their suitability process, as defined in law.
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AB 1282 would clarify that an "applicant" is only a person who
has applied for a state gambling license, a key employee
license, registration, a finding of suitability, a work permit,
a manufacturer's or distributor's license, or an approval of any
act or transaction for which the approval or authorization of
the CGCC or DOJ is required or permitted under this chapter.
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 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) 2007-2008 Session. Would have added to the
definition of "license" any other license issued by CGCC
pursuant to the Act or by a regulation adopted pursuant to that
Act. (Held in Assembly Rules Committee)
SB 730 (Florez), Chapter 438, Statutes of 2007. Makes various
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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. 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 Gambling Control
Act, which provided for DOJ to investigate and enforce
controlled gambling in the state. It also established the
Commission and empowered it to regulate gambling in this state
to issue, suspend, or revoke gambling licenses.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
AB 1282
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None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531