BILL ANALYSIS                                                                                                                                                                                                    

                              Senator Isadore Hall, III
                                2015 - 2016  Regular 

          Bill No:           AB 1282          Hearing Date:    6/29/2015
          |Author:    |Gray                                                 |
          |Version:   |2/27/2015    Introduced                              |
          |Urgency:   |No                     |Fiscal:      |No              |
          |Consultant:|Felipe Lopez                                         |
          |           |                                                     |

          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  

          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  

          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


          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  


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          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  

          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


          None received


          None received



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