BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1125|
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THIRD READING
Bill No: SB 1125
Author: Florez (D)
Amended: 5/27/10
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 8-0, 4/13/10
AYES: Wright, Calderon, Denham, Florez, Oropeza, Padilla,
Price, Yee
NO VOTE RECORDED: Harman, Negrete McLeod, Wyland
SENATE APPROPRIATIONS COMMITTEE : 10-0, 5/3/10
AYES: Kehoe, Cox, Corbett, Denham, Leno, Price, Walters,
Wolk, Wyland, Yee
NO VOTE RECORDED: Alquist
SUBJECT : Gambling Control Act
SOURCE : Commerce Club
DIGEST : This bill requires the Department of Justice and
the California Gambling Control Commission to establish an
enhanced fee schedule for applicants who wish to have their
applications processed and background investigations
conducted in an expedited manner. This bill also provides
that jackpot funds are considered trust funds, and permits
a person between 18 and 21 years of age to work in a
gambling establishment under specified circumstances.
Senate Floor Amendments of 5/27/10 delete Section 5 of the
bill, thereby, leaving intact the current definition and
CONTINUED
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prohibition in law on who can bank games in California card
clubs.
ANALYSIS : Existing law, the Gambling Control Act,
provides for the licensure of certain individuals and
gambling establishments involved in various gambling
activities, and for the regulation of those activities, by
the California Gambling Control Commission (CGCC).
Existing law provides for the enforcement of those
activities by the Department of Justice (DOJ).
Existing law requires that an application for a license or
a determination of suitability be accompanied by a deposit
that, in the judgment of the head of the Bureau of Gambling
Control (Bureau) within DOJ, will be adequate to pay the
anticipated costs and charges incurred in the investigation
and processing of the application. Existing law requires
the head of the Bureau to adopt a schedule of costs and
charges of investigation for use as guidelines in fixing
the amount of the deposit.
Existing law expresses the intent of the Legislature that
nothing in the Gambling Control Act shall be construed to
preclude any city, county, or city and county from
prohibiting any gambling activity, from imposing more
stringent local controls or conditions upon gambling than
are imposed by the Gambling Control Act or by CGCC.
Existing law defines "gambling establishment,"
"establishment," or "licensed premises," to mean one or
more rooms where any controlled gambling or activity
directly related thereto occurs.
Existing law prohibits a person under 21 years of age from
being eligible for a work permit in a gambling
establishment. Existing law also prohibits a person under
21 years of age from entering the premises of a licensed
gambling establishment, except as provided.
Existing law provides that a banking game does not include
a controlled game if the published rules of the game
feature a player-dealer position and provide that this
position must be continuously and systematically rotated
amongst each of the participants during the play of the
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game, and if other specified conditions are met.
Existing law defines "house" to mean the gambling
enterprise, and any owner, shareholder, partner, key
employee, or landlord thereof.
Existing law defines "gambling enterprise" to mean a
natural person or an entity, whether individual, corporate,
or otherwise, that conducts a gambling operation and that
by virtue thereof is required to hold a state gambling
license under this chapter.
This bill:
1. Provides that jackpot funds held by a gambling
establishment, to which players have made contributions,
following the deduction of any administrative fee
approved by the Bureau within DOJ, are considered trust
funds that are held for the benefit of the players.
These funds are not the property of the gambling
establishment, but are held solely for the benefit of
the players.
2. Requires DOJ and CGCC to establish an enhanced fee
schedule to provide for additional fees to be charged to
applicants who wish to have their applications processed
and background investigations conducted in an expedited
manner. The payment of those enhanced fees shall
entitle the applicant to have their applications
processed in a shorter period of time than normally
would be the case.
3. Permits a person between 18 and 21 years of age to be
employed to work in a gambling establishment, provided
that they may not work as dealers, floor men, or any
other employment classification that exclusively
involves working on the floor of the gambling
establishment. A person between 18 and 21 years of age
may be employed in job classifications that entail
providing services on and off the gaming floor that are
not involved in play of any controlled game.
4. Makes other technical and conforming changes.
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NOTE: Please refer to the Senate Governmental
Organization Committee analysis for a section by
section breakdown on the bill's provisions.
Comments
According to the bill's sponsor, the Commerce Club:
"[This bill] makes numerous changes to the Gambling
Control Act which are largely non-controversial.
"Section one of the bill seeks to protect jackpot funds
to which players have made contributions, by declaring
them to, in essence, be trust funds. Recently, we had
the experience of a card club going out of business, and
absconding with the funds which were held for the benefit
of players who achieved certain designated hands.
Additionally, this measure tasks the Bureau and the
Commission with establishing an enhanced fee schedule for
applicants for who may wish to have their gambling
licensed processed in an expedited manner. Currently,
there is not provision for the Commission or the Bureau
to charge an increased amount for special handling of an
application.
"This bill also authorizes a card club to employ
individuals who are between the ages of eighteen and
twenty-one in positions that do not require them to work
mainly on the gaming floor. This will allow card clubs
to hire eighteen to twenty-one year old individuals to
work as food servers, bus boys, and other related
services which do not entail them working mainly on the
gaming floor."
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
Jackpot funds ---------minor,
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absorbable---------Special*
Enhanced fee/processing $132 $263
$263Special*
potentially offset by fee revenue
Under age 21 permits ---------minor,
absorbable--------- Special*
* Gambling Control Fund
SUPPORT : (Verified 5/27/10)
Commerce Club (source)
Bicycle Casino
Crystal Casino & Hotel
Hollywood Park Casino
Lucky Chances
Oceans Eleven Casino
Village Club
TSM:mw 5/28/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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