BILL ANALYSIS
Bill No: AB
2524
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Dean Florez, Chair
2007-2008 Regular Session
Staff Analysis
AB 2524 Author: Benoit
As Introduced: February 21, 2008
Hearing Date: June 10, 2008
Consultant: Chris Lindstrom
SUBJECT
California Gambling Control Commission: employees:
fingerprints.
DESCRIPTION
AB 2524 adds a section to the Government Code to authorize
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
AB 2524 (Benoit) continued
Page 2
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.
EXISTING LAW
Existing law 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.
BACKGROUND
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.
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
AB 2524 (Benoit) continued
Page 3
(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 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 clubs) and the Third Party
Proposition Player Services (proposition players) industry,
making recommendations on the suitability of card room key
employees and Tribal key employees and collecting payments
from Tribes, card clubs, the proposition player industry
and other entities under the jurisdiction of CGCC.
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 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.
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 clubs, the proposition
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Page 4
player 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. The CGCC has jurisdiction over
gambling establishments (card clubs), the proposition
player 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 clubs extends to the operation,
concentration, and supervision of the card clubs 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.
Arguments in support. The 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
AB 2524 (Benoit) continued
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furnishing the confidential records or information
submitted by applicants to any person not authorized under
law. Violations are subject to a misdemeanor penalty."
PRIOR/RELATED LEGISLATION
AB 1517 (S. Runner), Chapter 339, Statutes of 2005 . Allows
the Department of Managed Health Care to obtain
fingerprints and related information to perform background
checks on prospective employees who would have access to
medical information.
AB 2075 (Benoit), Chapter 419, Statutes of 2004 .
Authorizes the Department of Motor Vehicles to conduct
background checks on current and prospective employees.
SB 8 (Lockyer) of 1997 . enacted the Gambling Control Act
which established the Division of Gambling Control within
the Department of Justice and the California Gambling
Control Commission.
SUPPORT: (As of June 6, 2008)
Artichoke Joe's Casino
California Gambling Control Commission (Sponsor)
OPPOSE: (As of June 6, 2008)
None on file.
FISCAL COMMITTEE: Senate Appropriations Committee
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