California Legislature—2015–16 Regular Session

Assembly BillNo. 1188

Introduced by Assembly Member Gipson

February 27, 2015

An act to amend Section 19805 of the Business and Professions Code, relating to gambling.


AB 1188, as introduced, Gipson. Gambling: key employee.

Existing law, the Gambling Control Act, provides for the licensure and regulation of various legalized gambling activities and establishments by the California Gambling Control Commission and the investigation and enforcement of those activities and establishments by the Department of Justice. For purposes of the act, existing law 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, among others, pit bosses, shift bosses, credit executives, cashier operations supervisors, gambling operation managers and assistant managers, and managers or supervisors of security employees.

This bill would revise the definition of “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 with regard to gambling operations. The bill would also delete pit bosses and shift bosses from the definition of “key employee,” and would instead include shift managers and surveillance managers and supervisors in these provisions.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1


Section 19805 of the Business and Professions
is amended to read:



As used in this chapter, the following definitions shall

5(a) “Affiliate” means a person who, directly or indirectly through
6one or more intermediaries, controls, is controlled by, or is under
7common control with, a specified person.

8(b) “Applicant” means any person who has applied for, or is
9about to apply for, a state gambling license, a key employee license,
10a registration, a finding of suitability, a work permit, a
11manufacturer’s or distributor’s license, or an approval of any act
12or transaction for which the approval or authorization of the
13commission or department is required or permitted under this

15(c) “Banking game” or “banked game” does not include a
16controlled game if the published rules of the game feature a
17player-dealer position and provide that this position must be
18continuously and systematically rotated amongst each of the
19participants during the play of the game, ensure that the
20player-dealer is able to win or lose only a fixed and limited wager
21during the play of the game, and preclude the house, another entity,
22a player, or an observer from maintaining or operating as a bank
23during the course of the game. For purposes of this section, it is
24not the intent of the Legislature to mandate acceptance of the deal
25by every player if the department finds that the rules of the game
26render the maintenance of or operation of a bank impossible by
27other means. The house shall not occupy the player-dealer position.

28(d) “Chief” means the head of the entity within the department
29that is responsible for fulfilling the obligations imposed upon the
30department by this chapter.

31(e) “Commission” means the California Gambling Control

33(f) “Controlled gambling” means to deal, operate, carry on,
34conduct, maintain, or expose for play any controlled game.

35(g) “Controlled game” means any controlled game, as defined
36by subdivision (e) of Section 337j of the Penal Code.

37(h) “Department” means the Department of Justice.

P3    1(i) “Director” means any director of a corporation or any person
2performing similar functions with respect to any organization.

3(j) “Finding of suitability” means a finding that a person meets
4the qualification criteria described in subdivisions (a) and (b) of
5Section 19857, and that the person would not be disqualified from
6holding a state gambling license on any of the grounds specified
7in Section 19859.

8(k) “Game” and “gambling game” means any controlled game.

9(l) “Gambling” means to deal, operate, carry on, conduct,
10maintain, or expose for play any controlled game.

11(m) “Gambling enterprise” means a natural person or an entity,
12whether individual, corporate, or otherwise, that conducts a
13gambling operation and that by virtue thereof is required to hold
14a state gambling license under this chapter.

15(n) “Gambling enterprise employee” means any natural person
16employed in the operation of a gambling enterprise, including,
17without limitation, dealers, floor personnel, security employees,
18countroom personnel, cage personnel, collection personnel,
19surveillance personnel, data-processing personnel, appropriate
20maintenance personnel, waiters and waitresses, and secretaries, or
21any other natural person whose employment duties require or
22authorize access to restricted gambling establishment areas.

23(o) “Gambling establishment,” “establishment,” or “licensed
24premises,” except as otherwise defined in Section 19812, means
25one or more rooms where any controlled gambling or activity
26directly related thereto occurs.

27(p) “Gambling license” or “state gambling license” means any
28license issued by the state that authorizes the person named therein
29to conduct a gambling operation.

30(q) “Gambling operation” means exposing for play one or more
31controlled games that are dealt, operated, carried on, conducted,
32or maintained for commercial gain.

33(r) “Gross revenue” means the total of all compensation received
34for conducting any controlled game, and includes interest received
35in payment for credit extended by an owner licensee to a patron
36for purposes of gambling, except as provided by regulation.

37(s) “Hours of operation” means the period during which a
38gambling establishment is open to conduct the play of controlled
39games within a 24-hour period. In determining whether there has
40been expansion of gambling relating to “hours of operation,” the
P4    1department shall consider the hours in the day when the local
2ordinance permitted the gambling establishment to be open for
3business on January 1, 1996, and compare the current ordinance
4and the hours during which the gambling establishment may be
5open for business. The fact that the ordinance was amended to
6permit gambling on a day, when gambling was not permitted on
7January 1, 1996, shall not be considered in determining whether
8there has been gambling in excess of that permitted by Section

10(t) “House” means the gambling enterprise, and any owner,
11shareholder, partner, key employee, or landlord thereof.

12(u) “Independent agent,” except as provided by regulation,
13means any person who does either of the following:

14(1) Collects debt evidenced by a credit instrument.

15(2) Contracts with an owner licensee, or an affiliate thereof, to
16provide services consisting of arranging transportation or lodging
17for guests at a gambling establishment.

18(v) “Initial license” means the license first issued to a person
19authorizing that person to commence the activities authorized by
20 that license.

21(w) “Institutional investor” means any retirement fund
22administered by a public agency for the exclusive benefit of federal,
23state, or local public employees, any investment company
24registered under the Investment Company Act of 1940 (15 U.S.C.
25Sec. 80a-1 et seq.), any collective investment trust organized by
26banks under Part Nine of the Rules of the Comptroller of the
27Currency, any closed-end investment trust, any chartered or
28licensed life insurance company or property and casualty insurance
29company, any banking and other chartered or licensed lending
30institution, any investmentbegin delete advisorend deletebegin insert adviserend insert registered under the
31Investmentbegin delete Advisorsend deletebegin insert Advisersend insert Act of 1940 (15 U.S.C. Sec. 80b-1
32et seq.) acting in that capacity, and other persons as the commission
33may determine for reasons consistent with the policies of this

35(x) “Key employee” means any natural person employed in the
36operation of a gambling enterprise in a supervisory capacity or
37empowered to make discretionary decisionsbegin delete that regulateend deletebegin insert with
38regard toend insert
gambling operations, including, without limitation,begin delete pit
39bosses,end delete
shiftbegin delete bosses,end deletebegin insert managers,end insert credit executives, cashier operations
40supervisors, gambling operation managers and assistant managers,
P5    1managers or supervisors of security employees,begin insert surveillance
2managers or supervisors,end insert
or any other natural person designated
3as a key employee by the department for reasons consistent with
4the policies of this chapter.

5(y) “Key employee license” means a state license authorizing
6the holder to be employed as a key employee.

7(z) “License” means a gambling license, key employee license,
8or any other license issued by the commission pursuant to this
9chapter or regulations adopted pursuant to this chapter.

10(aa) “Licensed gambling establishment” means the gambling
11premises encompassed by a state gambling license.

12(ab) “Limited partnership” means a partnership formed by two
13or more persons having as members one or more general partners
14and one or more limited partners.

15(ac) “Limited partnership interest” means the right of a general
16or limited partner to any of the following:

17(1) To receive from a limited partnership any of the following:

18(A) A share of the revenue.

19(B) Any other compensation by way of income.

20(C) A return of any or all of his or her contribution to capital of
21the limited partnership.

22(2) To exercise any of the rights provided under state law.

23(ad) “Owner licensee” means an owner of a gambling enterprise
24who holds a state gambling license.

25(ae) “Person,” unless otherwise indicated, includes a natural
26person, corporation, partnership, limited partnership, trust, joint
27venture, association, or any other business organization.

28(af) “Player” means a patron of a gambling establishment who
29participates in a controlled game.

30(ag) “Player-dealer” and “controlled game featuring a
31player-dealer position” refer to a position in a controlled game, as
32defined by the approved rules for that game, in which seated player
33participants are afforded the temporary opportunity to wager
34against multiple players at the same table, provided that this
35position is rotated amongst the other seated players in the game.

36(ah) “Publicly traded racing association” means a corporation
37licensed to conduct horse racing and simulcast wagering pursuant
38to Chapter 4 (commencing with Section 19400) whose stock is
39publicly traded.

P6    1(ai) “Qualified racing association” means a corporation licensed
2to conduct horse racing and simulcast wagering pursuant to Chapter
34 (commencing with Section 19400) that is a wholly owned
4subsidiary of a corporation whose stock is publicly traded.

5(aj) “Renewal license” means the license issued to the holder
6of an initial license that authorizes the license to continue beyond
7the expiration date of the initial license.

8(ak) “Work permit” means any card, certificate, or permit issued
9by the commission, or by a county, city, or city and county, whether
10denominated as a work permit, registration card, or otherwise,
11authorizing the holder to be employed as a gambling enterprise
12employee or to serve as an independent agent. A document issued
13by any governmental authority for any employment other than
14gambling is not a valid work permit for the purposes of this chapter.