BILL ANALYSIS
AB 2524
Page 1
ASSEMBLY THIRD READING
AB 2524 (Benoit)
As Introduced February 21, 2008
Majority vote
GOVERNMENTAL ORGANIZATION 12-0 APPROPRIATIONS 17-0
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|Ayes:|Torrico, Plescia, Charles |Ayes:|Leno, Walters, Caballero, |
| |Calderon, Davis, De Leon, | |Davis, DeSaulnier, |
| |Garcia, Jeffries, Levine, | |Emmerson, Furutani, |
| |Portantino, Price, Silva, | |Huffman, Karnette, |
| |Tran | |Krekorian, |
| | | |La Malfa, Lieu, Ma, |
| | | |Nakanishi, Nava, Sharon |
| | | |Runner, Solorio |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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)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.
2)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.
3)Prohibits a person who would be disqualified from holding a
state gambling license from being selected, appointed, or
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hired in a position that would include any duties involving
access to that information or those accountable items.
4)Provides the fingerprint requirement does not apply to an
employee of CGCC whose appointment occurred prior to January
1, 2009.
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 CGCC. Existing law
authorizes CGCC to take actions to ensure that no ineligible,
disqualified, or unsuitable persons are associated with
controlled gambling activities.
FISCAL EFFECT : CGCC would incur minor charges from the
Department of Justice (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 :
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 require 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 DOJ [the law enforcement agency for card rooms, the Third
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Party Proposition Player Services (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
convictions from working for the gaming agency.
Responsibilities of CGCC: 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 this 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 CGCC, 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.
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Presently, CGCC has limited authority to request criminal
background history reports on prospective employees and
contractors. CGCC 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 CGCC employees perform duties that require access to
confidential information and cash or checks, existing law does
not provide CGCC with the broad authority to conduct criminal
background checks for all individuals that perform such duties.
These duties include, but are not limited 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 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 CGCC.
This bill 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 CGCC to request criminal background
checks; and, 3) allow CGCC's Executive Director to make a final
determination of fitness for prospective employees and
contractors.
CGCC states, "this proposal is intended to help protect the
confidentiality of information as required under the Gambling
Control Act and the Tribal-State Gaming Compacts. Under the
Tribal-State Gaming Compacts, all information and records
obtained by the CGCC 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
CGCC 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."
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
AB 2524
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FN: 0004509