BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  SB 1485|
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                                    CONSENT


          Bill No:  SB 1485
          Author:   Senate Governmental Organization Committee
          Amended:  As introduced
          Vote:     21

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  10-0, 4/13/10
          AYES:  Wright, Calderon, Denham, Florez, Negrete McLeod,  
            Oropeza, Padilla, Price, Wyland, Yee
          NO VOTE RECORDED:  Harman

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8


           SUBJECT  :    Gambling Control Act:  licenses

           SOURCE  :     Author


           DIGEST  :    This bill clarifies and updates the definition  
          of key employee in the Gambling Control Act.

           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 California Gambling  
          Control Commission (CGCC). 

          Existing law provides for the enforcement of those gambling  
          activities by Department of Justice (DOJ).

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          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.

          This 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."

           Comments
           
          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.

          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  
          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  







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          clubs.

          This bill 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".  

          This 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  4/27/10   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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