BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 1282 Hearing Date: 6/29/2015
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|Author: |Gray |
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|Version: |2/27/2015 Introduced |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Felipe Lopez |
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SUBJECT: Gambling: Gambling Control Act
DIGEST: This bill revises 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.
ANALYSIS:
Existing law:
1)Provides, under the Gambling Control Act (Act), 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) and enforcement by the Department of Justice (DOJ).
2)Authorizes the CGCC, for any cause deemed reasonable by the
CGCC, to deny any application for a 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
about to apply for, a state gambling license, or other
licenses, permits, or approvals, as specified.
This bill revises the definition of "applicant" to no longer
include any person who is about to apply for a state gambling
AB 1282 (Gray) Page 2 of ?
license, or other licenses, permits, or approvals, as specified
Background
Purpose of the bill. According to the author, "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 the DOJ to begin their suitability
process, as defined in law. 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 CGGC or DOJ is required or
permitted under this chapter."
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, and
whose 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.
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 managers." (Held in 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; imposed
on all partnerships and LLCs the same licensing requirements
AB 1282 (Gray) Page 3 of ?
that are applicable to limited partnerships and provided 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
required 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. The bill was
gutted and amended in the Assembly. (Held in Assembly Rules
Committee)
AB 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.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: No Local: No
SUPPORT:
None received
OPPOSITION:
None received
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