BILL ANALYSIS �
Bill No: SB
374
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Bill Analysis
SB 374 Author: Strickland
Introduced: February 15, 2011
Hearing Date: April 26, 2011
Consultant: Paul Donahue
SUBJECT : Gambling control: Key employees
SUMMARY : Authorizes a key employee with a valid personal
portable license to work as a key employee in any key
employee position in more than one gambling establishment.
Existing law :
1) The Gambling Control 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.
2) Requires certain people employed in the operation of a
gambling enterprise, known as "key employees,"<1> to apply
for and obtain a key employee license.
3) Entitles the holder of a key employee license to work in
any key employee position at any gambling establishment,
provided that the key employee terminates employment with
one gambling establishment before commencing work for
another.
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<1> Business and Professions Code � 19805 defines a "key
employee" to mean 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, etc.
SB 374 (Strickland) continued
PageB
4) Requires the Gambling Control Commission to establish a
program for portable personal licenses for key employees.
This bill :
1) Authorizes a key employee with a valid personal portable
license to work as a key employee in any key employee
position in more than one gambling establishment.
COMMENTS :
1) Regulation of card club gaming and employees : Prior to
1998, California's gambling industry was essentially
unregulated. In 1984, the Legislature enacted the Gaming
Registration Act, which required the Attorney General's
office to provide uniform, minimum regulation of
California's card rooms. However, the scope of the
Attorney General's authority was extremely limited and
funding was inadequate.
In 1997 the Legislature enacted the Gambling Control Act
(Stats. 1997, ch. 867), which created a comprehensive
scheme for statewide regulation of legal gambling under a
bifurcated system of administration involving the Division
of Gambling Control<2> within the Attorney General's Office
and the five-member California Gambling Control Commission
appointed by the governor.<3> The commission is authorized
to establish minimum regulatory standards for the gambling
industry, and ensure that state gambling licenses are not
issued to or held by unsuitable or unqualified individuals.
The Department of Justice (DOJ) is responsible for
conducting background investigations into applicants
seeking key employee licenses. The DOJ assesses the
integrity of the applicant, general character, reputation,
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<2> In 2007, the Attorney General redefined the Division as
a Bureau. The Bureau of Gambling Control resides within the
Division of Law Enforcement at the Department of Justice.
<3> Both the Bureau of Gambling Control and the Gambling
Control Commission are special fund agencies whose budgets
are funded by fees imposed upon the regulated industry.
SB 374 (Strickland) continued
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habits, and financial and criminal history.
2) Purpose of the bill :
According to the author, existing law only allows a key
employee to work at one gambling establishment at a time.
Thus, individuals may not work at multiple gambling sites
even though the sites may have the same owner. The author
wants to remove this statutory restriction to assist these
employees, who may not be able to work full-time at one
location.
3) Related legislation :
AB 1418 (Assembly G.O. Committee, 2011) 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. (Pending in Assembly)
SB 730 (Florez, 2007) required the California Gambling
Control Commission to establish a program for portable
personal licenses for key employees. (Stats. 2008, ch. 438)
AB 1620 (Klehs, 2006) changed the license fee structure for
card rooms licensed by the Gambling Control Commission.
(Stats. 2006, ch. 721)
SB 1198 (Florez, 2006) removed wagering limits from the
list of items that are considered to be an "expansion of
gambling" pursuant to the current moratorium on the
expansion of gambling in local cities and counties. (Stats.
2006, ch. 181)
AB 1753 (Assembly G.O. Committee, 2005) removed the
residency requirement for key employees of California card
rooms. The bill also revised penalties for violations of
state gambling laws, and enacted related provisions.
(Stats. 2006, ch. 546)
SB 8 (Lockyer, 1997) repealed the Gaming Registration Act
and enacted the Gambling Control Act, under which the
Department of Justice investigates and enforces controlled
gambling in the state. It also established the Gambling
Control Commission to among other things issue, suspend, or
revoke gambling licenses. (Stats. 1997, ch. 867)
SB 374 (Strickland) continued
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SUPPORT:
None on file
OPPOSE:
None on file
FISCAL COMMITTEE: Yes
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