BILL ANALYSIS
AB 2524
Page 1
Date of Hearing: April 9, 2008
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Alberto Torrico, Chairman
AB 2524 (Benoit) - As Introduced: February 22, 2008
SUBJECT : California Gambling Control Commission: employees:
fingerprints.
SUMMARY : Authorizes the California Gambling Control Commission
(CGCC) to require fingerprint images and associated information
from a prospective employee if the employee's duties include, or
would include, access to specified information or accountable
items. Specifically, this bill :
1)Authorizes CGCC to require fingerprint images and associated
information from a prospective employee if the employee's
duties include, or would include, access to specified
information or accountable items.
2)Provides that CGCC shall require that any services contract
include a provision requiring the contractor to agree to
permit CGCC to require fingerprint images and associated
information from the contractor's employees, contractors,
agents, or subcontractors, whose duties include, or would
include, access to that information or those accountable
items.
3)Allows the submission of these fingerprints to obtain
specified criminal history information, and would authorize
the executive director of CGCC to investigate the criminal
history of persons applying for employment and prospective
service contractors and their agents, subcontractors, or
employees, in order to make a final determination of a
person's fitness to perform duties that would include access
to that information or those accountable items.
4)Prohibits a person who would be disqualified from holding a
state gambling license from being selected, appointed, or
hired in a position that would include any duties involving
access to that information or those accountable items.
5)Provides the fingerprint requirement does not apply to an
employee of CGCC whose appointment occurred prior to January
1, 2009.
AB 2524
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EXISTING LAW :
1)Provides under the California Gambling Control Act (Act) for
the licensure of certain individuals and establishments
involved in various gambling activities, and for the
regulation of those activities, by the commission. Existing
law authorizes CGCC to take actions to ensure that no
ineligible, disqualified, or unsuitable persons are associated
with controlled gambling activities.
FISCAL EFFECT : Unknown.
COMMENTS :
Background . This proposal is based on similar legislation
sponsored by the Department of Managed Health Care (DMHC), AB
1517 (Runner), Chapter 339, Statutes of 2005 and the Department
of Motor Vehicles (DMV), AB 2075 (Benoit), Chapter 419, Statutes
of 2004, that requires certain individuals to receive background
investigations based on access to specified information and
their job duties. Specifically, DMHC requires background checks
on all prospective employees and contractors with access to
medical information, while DMV requires background checks for
employees that have access to confidential information and cash
or checks and employees that make recommendations on approval or
denial of licenses.
Other California gaming agencies also require background checks.
The California Lottery Commission and the California Horse
Racing Board require all prospective employees to receive
background checks. In addition, the Bureau of Gambling Control
within the Department of Justice (the law enforcement agency for
card rooms, the TPPPS industry and Tribal gaming) requires
background checks on all prospective employees.
Other states' gaming regulatory agencies, including the Nevada
Gaming Control Board, New Mexico Gaming Control Board, and
Arizona Department of Gaming, require all employees within their
gaming regulatory agencies to submit fingerprints and background
information and/or undergo a background investigation. The
Washington State Gaming Commission and New York Racing and
Wagering Board require fingerprint images and background
investigations on agents that will be working at a racetrack or
casino. These states all prohibit individuals with felony
AB 2524
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convictions from working for the gaming agency.
Responsibilities of CGCC . The CGCC has jurisdiction over
gambling establishments (card rooms), the TPPPS industry,
pursuant to its authority under State law, as well as
responsibilities with regard to Tribal gaming under the
Tribal-State Gaming Compacts. CGCC's regulatory authority over
card rooms extends to the operation, concentration, and
supervision of the card rooms and all persons and things related
to each licensed establishment. In addition, CGCC has
fiduciary, regulatory, and administrative responsibilities
related to Tribal Gaming that generally include: (1) oversight
of Class III gaming operations, which are primarily casino-type
games, (2) distribution of Tribal Gaming revenues to various
state funds and to authorized, federally-recognized, non-Compact
tribes, (3) monitoring of Tribal Gaming through determinations
of suitability for tribal key employees, gaming resource
suppliers (vendors), and financial sources, (4) reviewing
internal controls in Tribal casinos, (5) inspecting gaming
devices in Tribal casinos, and (6) verification of Tribal
contributions to the State to ensure that Tribes are making
accurate payments.
Purpose of the bill . According to the sponsor, CGCC, this bill
is needed to protect the integrity of the CGCC's activities, the
confidentiality of information accessed by the Commission, and
reduces the risk of fraud. CGCC believes they need the
authority to receive information on the criminal histories for
prospective employees and contractors that have duties that
include access to confidential information, state summary
criminal history information, or cash, checks or other
accountable items, and to make determinations of fitness for
these individuals.
Presently, CCGC has limited authority to request criminal
background history reports on prospective employees and
contractors. CCGC may only request "criminal background checks"
for employees that have access to criminal history information
(employees of the Licensing Division and all managers).
While many Commission employees perform duties that require
access to confidential information and cash or checks, existing
law does not provide the Commission with the broad authority to
conduct criminal background checks for all individuals that
perform such duties. These duties include, but are not limited
AB 2524
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to, testing gaming devices in Tribal casinos, conducting
financial audits of Tribal casinos, monitoring and validating
internal controls in casinos, making recommendations on
applications from gambling establishments (card rooms) and the
Third Party Proposition Player Services (TPPPS) industry, making
recommendations on the suitability of card room key employees and
Tribal key employees and collecting payments from Tribes, card
rooms, the TPPPS industry and other entities under the
jurisdiction of CCGC.
AB 2524 adds a new section to the Government Code to: (1)
Authorize the CGCC to require prospective employees and
contractors that would perform specified duties to submit
fingerprint images; (2) allow CCGC to request criminal background
checks, and (3) allow CCGC's Executive Director to make a final
determination of fitness for prospective employees and
contractors.
The CCGC states, "this proposal is intended to help protect the
confidentiality of information as required under the Gambling
Control Act the Act and the Tribal-State Gaming Compacts. Under
the Tribal-State Gaming Compacts, all information and records
obtained by the CCGC are confidential. The Tribe may avail
itself of any and all remedies under state law for improper
disclosure of information or documents. The Act also prohibits
CCGC employees from knowingly disclosing or furnishing the
confidential records or information submitted by applicants to
any person not authorized under law. Violations are subject to
a misdemeanor penalty."
REGISTERED SUPPORT / OPPOSITION :
Support
Artichoke Joe's Casino
California Gambling Control Commission, Sponsor
Opposition
None on file.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531