BILL ANALYSIS
Bill No: SB
829
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 829 Author: Committee on Governmental Organization
As Proposed to be Amended: April 28, 2009
Hearing Date: April 28, 2009
Consultant: Chris Lindstrom
SUBJECT
Gambling: licenses.
DESCRIPTION
SB 829 clarifies and updates the definition of "key
employee" in the Gambling Control Act, and, provides the
California Gambling Control Commission (CGCC) with the
authority to administer oaths of office to new CGCC members
and other specified employees of CGCC and to certify
official acts in connection with the business of CGCC.
Specifically, the bill:
1)Deletes the terms pit bosses and shift bosses from the
definition of key employee and adds shift managers, game
supervisors, floor supervisors, general managers,
surveillance managers and supervisors to the definition
of key employee.
2)Authorizes the executive director and members of CGCC to
administer oaths and certify official acts in connection
with the business of CGCC.
EXISTING LAW
Existing law, the Gambling Control Act (Act), provides for
the licensure of certain individuals and establishments
involved in various gambling activities, and for the
regulation of those activities, by the CGCC.
SB 829 (G.O. Committee) continued
Page 2
Existing law provides for the enforcement of those gambling
activities by Department of Justice (DOJ).
Existing law makes it a crime for specified persons to fail
to apply for and obtain from CGCC, and to thereafter
maintain, a valid key employee license.
Existing law 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,
without limitation, pit bosses, shift bosses, credit
executives, cashier operations supervisors, gambling
operation managers and assistant managers, managers or
supervisors of security employees, or any other natural
person designated as a key employee by DOJ for reasons
consistent with the policies of the Act.
Existing law requires the chief and each member of CGCC
subscribe to the constitutional oath of office and also
swear that he or she is not pecuniarily interested in, or
doing business with, any person, business, or organization
holding a gambling license.
Existing law provides various other state agencies, boards
and commissions with explicit authority to administer oaths
that was established as part of their enabling legislation.
Existing law provides authority for boards and commissions
to administer oaths that includes the following:
Boards and commissions with the Department of
Consumer Affairs (DCA) (Business and Professions Code
Section 159);
The Commissioner of Corporations (Financial Code
Section 30700 and 17610, 17611);
The California Horse Racing Board (Business and
Professions Code Section 19435);
The Fair Political Practices Commission (Government
Code Section 83118);
The Public Utilities Commission (Public Utilities
Code Section 728.5);
The Industrial Welfare Commission (Labor Code
Section 1176); and,
The California-Nevada Compact Commission (Water
Code Section 5976).
SB 829 (G.O. Committee) continued
Page 3
BACKGROUND
Background. 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 inimical 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.
Definition of key employee. SB 829 changes the definition
of key employee to include persons who are empowered to
make discretionary decisions with regard to gambling
operations rather than persons who are empowered to make
discretionary decisions that regulate gambling operations.
This change provides CGCC the authority to license those
persons that have control over gambling operations in card
clubs. Further, the bill clarifies that state and local
governments regulate gambling, not the card clubs.
The proposal also deletes the term pit bosses and shift
bosses from the definition of key employee. These are
terms generally used in Nevada casinos, not in card clubs
which use the term shift managers, game supervisors, floor
supervisors, and general managers. Finally, the bill
includes surveillance managers or supervisors in the
definition of key employee. These are persons who play a
key role in the security, oversight, and in some cases,
investigations of card club activities.
Administer oaths of office and certify official acts. CGCC
currently lacks specific statutory authority to permit the
Chair, other Commission members, or the Executive Director
to administer the oath of office, and to certify official
acts. Periodically, it is necessary to take oaths of
office from new Commissioners, Deputy Directors and other
employees of CGCC. While existing law (Government Code
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Section 1225) provides that every executive officer may
administer and certify oaths, this statute does not
specifically address CGCC. The specific authority to
administer oaths was not provided to CGCC under the
Gambling Control Act.
When it is necessary to administer the oath of office, CGCC
relies on Business and Professions Code Section
19871(a)(1), which states that oral evidence shall only be
taken upon oath or affirmation, which by implication gives
Commissioners the power to administer oaths. This section,
however, does not provide Commissioners with clear,
unambiguous authority to administer oaths of office. SB
829 will clarify this issue for CGCC.
As it relates to "official acts", the bill doesn't give
CGCC any additional power to act, it only gives CGCC the
formal power to certify that a certain action was an
official act of the Commission. Examples of official acts
include the issuance of a license, denial of a license and
adoption of a regulation. This is consistent with the
enabling legislation for DCA and other agencies.
PRIOR/RELATED LEGISLATION
AB 293 (Mendoza), 2009-2010 Legislative Session . Among
other things, expands the definition of the term "license"
to mean any license issued by CGCC. Pending in Assembly
Appropriations Committee.
AB 1577 (Governmental Organization Committee), 2009-2010
Legislative Session . Among other things, expands the
definition of the term "license" to mean any license issued
by CGCC. Pending in Assembly Governmental Organization
Committee.
SB 1664 (Yee), 2007-2008 Legislative Session . Among other
things, would have modified the definition of key employee
similar to SB 829 (GO Committee) of 2009. Held in Assembly
Appropriations Committee.
SB 1678 (Florez), 2007-2008 Legislative Session . Would
have added to the definition of "license" any other license
issued by the CGCC pursuant to the Gambling Control Act or
by a regulation adopted pursuant to that Act. Gutted and
amended in the Assembly. Held in Assembly Rules Committee.
SB 829 (G.O. Committee) continued
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SB 730 (Florez), Chapter 438, Statutes of 2007 . Makes
various changes to the licensing and regulatory processes
related to key employees for gambling establishments under
the Gambling Control Act (Act).
AB 1753 (Governmental Organization Committee), Chapter 546,
Statutes of 2005 . Deletes the residency requirement for
key employees of California cardrooms. 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
establishes CGCC to regulate gambling in this state to
issue, suspend, or revoke gambling licenses.
SUPPORT: None on file as of April 24, 2009.
OPPOSE: None on file as of April 24, 2009.
FISCAL COMMITTEE: Senate Appropriations Committee
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