BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2518
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          Date of Hearing:   May 2, 2012

                   ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
                                 Isadore Hall, Chair
                  AB 2518 (Hall) - As Introduces:  February 24, 2012
           
          SUBJECT  :   Gambling: Gambling Control Act

           SUMMARY  :   Revises the definition of "applicant" to no longer 
          include any person who is about to apply for a state gambling 
          license, or other licenses, permits, or approvals, as specified. 
           

           EXISTING LAW  

          1)Provides, under the Gambling Control Act (Act), for the 
            licensure of certain individuals and establishments involved 
            in various gambling activities, by the California Gambling 
            Control Commission (CGCC) and the enforcement of those 
            activities by the Department of Justice (DOJ).

          2)Requires the CGCC to ensure that licenses, approvals, and 
            permits 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.

          3)Authorizes the CGCC, for any cause deemed reasonable by the 
            CGCC, to deny any application for a license, permit, or 
            approval, to limit, condition, or restrict any license, 
            permit, or approval, or to impose any fine upon any person 
            licensed or approved. 

          4)Defines an "applicant" as any person who has applied for, or 
            is about to apply for, a state gambling license, or other 
            licenses, permits, or approvals, as specified.

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   

           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 








                                                                  AB 2518
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          disqualified persons, or by persons whose operations are 
          conducted in a manner that is harmful 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.

           Purpose of the bill  :  The current definition of an applicant, 
          under the Act, includes individuals who are about to apply for a 
          state gambling license, or other licenses, permits, or 
          approvals. According to the author, "the definition of an 
          applicant should not include individuals who have not actually 
          applied for a gambling license. This bill would clarify and 
          codify in law that an applicant, for purposes of the Act, will 
          only include individuals who have applied for a gambling 
          license, or other licenses, permits, or approvals with the 
          CGCC."  This clarification will help to strengthen the 
          definition of an applicant by no longer including would be 
          applicants in the definition.

           Related legislation  :

          AB 2526 (Hall), 2011-2012 Legislative Session.  This bill would 
          revise the definition of a "key employee" to any person employed 
          in the operation of a gambling enterprise in a supervisory 
          capacity or empowered to make discretionary decisions with 
          regard to the gambling operations. Session (Pending in the 
          Assembly Committee on Appropriations).

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Felipe Lopez / G. O. / (916) 319-2531 











                                                                  AB 2518
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