BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2524
                                                                  Page  1

          Date of Hearing:   April 23, 2008

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mark Leno, Chair

                AB 2524 (Benoit) - As Introduced:  February 21, 2008 

          Policy Committee:                              Governmental  
          Organization Vote:                            12 - 0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill allows the Gambling Control Commission (GCC) to  
          require prospective employees to submit fingerprints for a  
          criminal background check. Specifically, this bill: 

          1)Requires any prospective employee to submit fingerprints if  
            their duties would include:
             a)   Access to information required to be kept confidential  
               under a tribal compact or the Gambling Control Act.
             b)   Access to state summary criminal history information. 
             c)   Access to cash checks or other accountable items.

          2)Requires the GCC in all contracts after January 1, 2009, to  
            include a provision requiring that contractors permit  
            fingerprinting of the contractor's employees, subcontractors,  
            and agents.

          3)Requires the Department of Justice (DOJ) to respond to the GCC  
            with background information.

          4)Allows the DOJ to assess a fee adequate to cover the costs of  
            the background checks.

          5)Gives the director of the GCC the authority to investigate the  
            criminal history of job applicants and contractors and allows  
            them to make a final determination as to the fitness of the  
            individual or contractor for the job.

           FISCAL EFFECT  










                                                                  AB 2524
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          GCC would incur minor charges from DOJ for background checks.  
          (DOJ is authorized under current law to charge state agencies  
          $32 per case for criminal background checks and $24 per case for  
          FBI referrals.) 


           COMMENTS  

           1)Purpose  . This legislation is based on previous proposals for  
            the Department of Managed Care and the Department of Motor  
            Vehicles (see related legislation).  According to the sponsor,  
            GCC, this bill is necessary to protect the integrity of GCC's  
            activities, the confidentiality of information accessed by the  
            Commission, and to reduce the risk of fraud.

            The sponsor further points out that other California gaming  
            agencies 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 oversight over card rooms, the  
            Third Party Proposition Player Services (TPPPS) industry and  
            Tribal gaming) requires background checks on all prospective  
            employees. 

           2)Responsibilities of the Gambling Control Commission  .  The CGCC  
            has regulatory jurisdiction over gambling establishments (card  
            rooms), the TPPPS industry and 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: 

             a)   Oversight of Class III gaming operations, which are  
               primarily casino-type games. 
             b)   Distribution of Tribal Gaming revenues to various state  
               funds and to authorized, federally-recognized, non-Compact  
               tribes. 
             c)   Monitoring of Tribal Gaming through determinations of  
               suitability for tribal key employees, gaming resource  
               suppliers (vendors), and financial sources. 
             d)   Reviewing internal controls in Tribal casinos. 








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             e)   Inspecting gaming devices in Tribal casinos. 
             f)   Verification of Tribal contributions to the State to  
               ensure that Tribes are making accurate payments. 

           3)Related Legislation  . AB 1517 (Runner; Chapter 339, Statutes of  
            2005) added the Department of Managed Care to the list of  
            agencies to which the Attorney General must furnish state  
            summary criminal history information.

            AB 2075 (Benoit; Chapter 419, Statutes of 2004) authorized the  
            Department of Motor Vehicles (DMV) to conduct criminal history  
            background checks on current and prospective employees whose  
            duties require access to confidential or sensitive  
            information, as specified. 


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081