BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                   SB 829|
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                                 THIRD READING


          Bill No:  SB 829
          Author:   Senate Governmental Organization Committee
          Amended:  4/29/09
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  12-0, 4/28/09
          AYES:  Wright, Harman, Benoit, Calderon, Denham, Florez,  
            Negrete McLeod, Oropeza, Padilla, Wiggins, Wyland, Yee
          NO VOTE RECORDED:  Vacancy

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Gambling:  licenses

           SOURCE  :     Author


           DIGEST  :    This bill 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.

           ANALYSIS  :    

          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. 

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          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.  



          This 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.

           Background
           
          This bill 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  

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          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. 

          This bill 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.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          TSM:do  5/19/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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