BILL ANALYSIS                                                                                                                                                                                                    

                                                                    AB 1282

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          Date of Hearing:  May 6, 2015


                                  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  

          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  


           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.



          None on file



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          None on file

          Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531