BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2518
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2518 (Hall)
          As Introduced  February 24, 2012
          Majority vote 

           GOVERNMENTAL ORGANIZATION     15-0                              
           
           ----------------------------------------------------------------- 
          |Ayes:|Hall, Nestande, Atkins,   |     |                          |
          |     |Block, Chesbro, Cook,     |     |                          |
          |     |Garrick, Gatto, Hill,     |     |                          |
          |     |Jeffries, Ma, Perea, V.   |     |                          |
          |     |Manuel P�rez, Silva,      |     |                          |
          |     |Torres                    |     |                          |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.








                                                                  AB 2518
                                                                  Page  2



           FISCAL EFFECT :  Unknown.  This bill is keyed non-fiscal by the 
          Legislative Counsel.

           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 
          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) of the current 2011-2012 
          legislative session, 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. 


           Analysis Prepared by  :    Felipe Lopez / G. O. / (916) 319-2531 


                                                                FN: 0003498









                                                                  AB 2518
                                                                  Page  3