BILL ANALYSIS
Bill No: SB
1485
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
SB 1485 Author: Committee on Governmental Organization
As Introduced: March 8, 2010
Hearing Date: April 13, 2010
Consultant: Chris Lindstrom
SUBJECT
Gambling Control Act: licenses.
DESCRIPTION
SB 1485 clarifies and updates the definition of "key
employee" in the Gambling Control Act.
Specifically, the bill deletes the terms pit bosses and
shift bosses from the definition of key employee and adds
shift managers and surveillance managers or supervisors to
the definition of key employee.
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.
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
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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.
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 1485 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, and, further, the state and local governments
regulate gambling, not the card clubs.
SB 1485 also deletes the term "pit bosses" and "shift
bosses" from the definition of key employee and replaces it
with "shift managers". The terms "pit bosses" and "shift
bosses" are generally used in Nevada casinos, not in card
clubs which use the term "shift managers".
Finally, SB 1485 includes surveillance managers or
supervisors in the definition of key employee. These are
persons who play a key role in the security, oversight, and
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in some cases, investigations of card club activities.
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 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 / OPPOSE : None on file as of April 9, 2010.
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FISCAL COMMITTEE: Senate Appropriations Committee
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