BILL NUMBER: AB 119	CHAPTERED  10/07/01

	CHAPTER  547
	FILED WITH SECRETARY OF STATE  OCTOBER 7, 2001
	APPROVED BY GOVERNOR  OCTOBER 5, 2001
	PASSED THE ASSEMBLY  AUGUST 31, 2001
	PASSED THE SENATE  AUGUST 30, 2001
	AMENDED IN SENATE  JULY 12, 2001
	AMENDED IN ASSEMBLY  APRIL 5, 2001
	AMENDED IN ASSEMBLY  MARCH 23, 2001

INTRODUCED BY   Assembly Member Chavez
   (Coauthors:  Assembly Members Diaz, Simitian, and Wyman)
   (Coauthor:  Senator Machado)

                        JANUARY 22, 2001

   An act to add Section 25221 to the Corporations Code, relating to
securities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 119, Chavez.  Securities:  broker-dealers:  employee criminal
background checks.
   Existing law provides for the licensing and regulation by the
Commissioner of Corporations of broker-dealers handling transactions
of securities.  Existing law authorizes the Department of Justice to
furnish state summary criminal history information (otherwise known
as a background check) concerning an individual to various persons
and entities that are authorized to receive that information,
including banks and other financial institutions.
   This bill would authorize a licensed broker-dealer, or affiliate,
or any officer or employee thereof, to submit to the department
fingerprints of an applicant for employment for the purpose of
obtaining information on whether that applicant has a conviction or
an arrest for which the applicant was released on bail or on his or
her own recognizance pending trial, as established by the department.
  The bill would provide that fingerprints includes fingerprints
taken by the use of fingerprint live-scan technology.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 25221 is added to the Corporations Code, to
read:
   25221.  (a) Notwithstanding any other provision of law, a
broker-dealer, or any affiliate thereof, licensed under this chapter,
or any officer or employee thereof, may submit to the Department of
Justice fingerprints of an applicant for employment for the purpose
of obtaining information as to the existence and nature of a record
of a conviction and of an arrest for which the Department of Justice
establishes that the applicant was released on bail or on his or her
own recognizance pending trial.  Fingerprints taken pursuant to this
section include fingerprints taken by the use of fingerprint
live-scan technology, as described in Section 1596.871 of the Health
and Safety Code.
   (b) The Department of Justice shall provide the following
information to the broker-dealer, affiliate, or officer or employee
thereof pursuant to subdivision (a):
   (1) Every conviction rendered against the applicant.
   (2) Every arrest for which the Department of Justice establishes
that the applicant was released on bail or on his or her own
recognizance pending trial.