BILL ANALYSIS �
Bill No: AB
2526
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 2526 Author: Hall
As Introduced: February 24, 2012
Hearing Date: June 12, 2012
Consultant: Paul Donahue
SUBJECT
Gambling control: key employees.
DESCRIPTION
This bill modifies a few definitions in the Gambling
Control Act. Specifically, this bill:
1)Revises 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.
2)Adds surveillance managers and supervisors to the
definition of "key employee" for licensing purposes.
3)Deletes the term "pit boss" and replaces the term "shift
boss" to "shift manager."
EXISTING LAW
1)The Gambling Control Act establishes a statutory
framework for the licensure of certain individuals and
establishments involved in various gambling activities
and for the regulation of those activities by the
Gambling Control Commission, and enforcement by the
Department of Justice (DOJ).
2)Makes it a crime for specified persons to fail to apply
AB 2526 (Hall) continued
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for, obtain and maintain a valid key employee license.
3)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.
BACKGROUND
1)Gambling Control Act : 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.
2)Purpose of the bill : This bill revises the definition of
key employee as any natural person employed in the
operation of a gambling enterprise in a supervisory
capacity or empowered to make discretionary decisions
with regard to 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.
AB 2526 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 terms generally used in Nevada
casinos, not in card clubs, which use the term "shift
managers."
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Finally, 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.
PRIOR/RELATED LEGISLATION
AB 293 (Mendoza) Chapter 233, Statutes of 2009 . Among
other things, allows a limited liability corporation (LLC)
and its officers, managers, members, or owners to be
eligible for a state gambling license; imposes on all
partnerships and LLCs the same licensing requirements that
are applicable to limited partnerships and provides that a
partnership, instead of being formed under the laws of the
state to be eligible for a gambling license must be
registered in the state and provide specific supplemental
information; and requires the Commission to develop
procedures to allow for the continuous operation of
licensed gambling establishments in cases including the
death or incapacity of a licensee.
SB 1678 (Florez) 2007-2008 Session . Would have added to
the definition of "license" any other license issued by
the Commission pursuant to the Gambling Control Act or by a
regulation adopted pursuant to that Act. (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.
AB 1753 (Governmental Organization Committee) Chapter 546,
Statutes of 2005 . Deletes the residency requirement for
key employees of California card rooms. 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
established the Commission and empowered it to regulate
gambling in this state to issue, suspend, or revoke
gambling licenses.
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SUPPORT:
None on file
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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