BILL ANALYSIS
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2524|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 2524
Author: Benoit (R)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 10-0, 6/10/08
AYES: Florez, Battin, Denham, Harman, Negrete McLeod,
Padilla, Vincent, Wiggins, Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 75-0, 5/15/08 - See last page for vote
SUBJECT : California Gambling Control Commission:
employees:
fingerprint
SOURCE : California Gambling Control Commission
DIGEST : This bill adds a section to the Government Code
to authorize the California Gambling Control Commission 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.
ANALYSIS :
Existing law provides under the California Gambling Control
Act (Act) for the licensure of certain individuals and
CONTINUED
AB 2524
Page
2
establishments involved in various gambling activities, and
for the regulation of those activities, by the commission.
Existing law authorizes California Gambling Control
Commission (CGCC) to take actions to ensure that no
ineligible, disqualified, or unsuitable persons are
associated with controlled gambling activities.
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 authorizes
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 is disqualified from holding a
state gambling license from being selected, appointed, or
hired in a position that includes 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.
Comments
AB 2524
Page
3
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
(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.
This bill adds a new section to the Government Code to:
(1) authorizes the CGCC to require prospective employees
and contractors that would perform specified duties to
submit fingerprint images, (2) allows CGCC to request
criminal background checks, and (3) allows CGCC's Executive
Director to make a final determination of fitness for
prospective employees and contractors.
Background
According to the Senate Governmental Organization Committee
AB 2524
Page
4
analysis, 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
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
AB 2524
Page
5
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.
Prior/Related Legislation
AB 1517 (S. Runner), Chapter 339, Statutes of 2005 . Allows
the DMHC 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 DMV 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 6/23/08)
California Gambling Control Commission (source)
Artichoke Joe's Casino
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
AB 2524
Page
6
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."
ASSEMBLY FLOOR :
AYES: Adams, Aghazarian, Anderson, Arambula, Beall,
Benoit, Berg, Berryhill, Blakeslee, Brownley, Caballero,
Charles Calderon, Carter, Cook, Coto, Davis, De La Torre,
De Leon, DeSaulnier, DeVore, Duvall, Emmerson, Eng,
Evans, Feuer, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garcia, Hancock, Hayashi, Hernandez, Horton,
Houston, Huff, Huffman, Jeffries, Jones, Keene,
Krekorian, La Malfa, Laird, Leno, Levine, Lieber, Lieu,
Ma, Maze, Mendoza, Mullin, Nakanishi, Nava, Niello,
Parra, Plescia, Portantino, Price, Sharon Runner, Ruskin,
Salas, Saldana, Silva, Smyth, Solorio, Spitzer,
Strickland, Swanson, Torrico, Tran, Villines, Walters,
Wolk, Bass
NO VOTE RECORDED: Dymally, Garrick, Karnette, Nunez, Soto
TSM:do 6/23/08 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****