BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 2526|
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CONSENT
Bill No: AB 2526
Author: Hall (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 13-0, 6/12/12
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De Le�n, Evans, Hernandez, Padilla, Walters,
Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 73-0, 5/10/12 (Consent) - See last page
for vote
SUBJECT : Gambling Control Act
SOURCE : Author
DIGEST : This bill changes several definitions within the
Gambling Control Act. Specifically, it (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, and (3) deletes the term
"pit boss" and replaces the term "shift boss" to "shift
manager."
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ANALYSIS :
Existing law:
1. 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).
2. Provides for the enforcement of those gambling
activities by the Department of Justice (DOJ).
3. 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.
4. 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.
Comments
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.
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 terms generally used in Nevada casinos, not in
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card clubs, which use the term "shift managers."
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.
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, 2007-08 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. The bill was held
in the 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 (Assembly 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
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established the Commission and empowered it to regulate
gambling in this state to issue, suspend, or revoke
gambling licenses.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
ASSEMBLY FLOOR : 73-0, 5/10/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bonilla, Bradford,
Brownley, Buchanan, Butler, Charles Calderon, Campos,
Carter, Cedillo, Chesbro, Conway, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Hall, Harkey, Hayashi, Roger Hern�ndez, Hill,
Huber, Hueso, Huffman, Jones, Knight, Lara, Logue, Bonnie
Lowenthal, Ma, Mansoor, Mendoza, Miller, Mitchell,
Monning, Morrell, Nestande, Nielsen, Pan, Perea,
Portantino, Silva, Skinner, Smyth, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Williams, Yamada,
John A. P�rez
NO VOTE RECORDED: Cook, Fletcher, Furutani, Jeffries,
Norby, Olsen, V. Manuel P�rez
DLW:mw 6/25/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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