A4059

An Act concerning criminal history record background checks for certain Department of Banking and Insurance employees and supplementing Title 17 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. The Commissioner of Banking and Insurance shall conduct a criminal history record background check, including a name and fingerprint identification check, of each employee of the Department of Banking and Insurance who is responsible for handling sensitive personal, financial, and proprietary information. On or after the effective date of this act, the criminal history record background check shall be conducted prior to an employee’s commencement of employment or service in the department.

b. The commissioner is authorized to exchange fingerprint data with, and to receive information from, the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations, for the purposes of facilitating determinations concerning qualifications for employment in the Department of Banking and Insurance. Upon receipt of the criminal history record information for an employee or prospective employee from the Division of State Police or the Federal Bureau of Investigation, the commissioner shall promptly notify the employee or prospective employee, in writing, of the employee’s or prospective employee’s qualification for employment in the department pursuant to section 2 of this act.

c. The Division of State Police shall promptly notify the commissioner in the event an employee or prospective employee, who was the subject of a criminal history record background check pursuant to this section, is arrested for a crime or offense in this State after the date the background check was performed.

2. No person shall serve as an officer, employee, or any other class of personnel in the Department of Banking and Insurance if that person is convicted of any crime or offense, as determined by a criminal history record background check conducted pursuant to the provisions of section 1 of this act, if the crime or offense involves dishonesty, breach of trust, money laundering, or any other crime or offense for which the Commissioner of Banking and Insurance determines is detrimental to the person’s employment in the department.

3. This act shall take effect immediately.

STATEMENT

This bill requires the Commissioner of Banking and Insurance to conduct a criminal history record background check, including a name and fingerprint identification check, of each employee of the Department of Banking and Insurance who is responsible for handling sensitive personal, financial, and proprietary information.

The bill authorizes the commissioner to exchange fingerprint data with, and to receive information from, the State Bureau of Identification in the Division of State Police and the Federal Bureau of Investigation consistent with applicable State and federal laws, rules, and regulations, for the purposes of facilitating determinations concerning qualifications for employment in the department. Upon receipt of the criminal history record information for an employee or prospective employee from the Division of State Police or the Federal Bureau of Investigation, the commissioner must promptly notify the employee or prospective employee, in writing, of the employee’s or prospective employee’s qualification for employment in the department pursuant the provisions of the bill.

The bill also directs the Division of State Police to promptly notify the commissioner in the event an employee or prospective employee, who was the subject of a criminal history record background check pursuant to the bill, is arrested for a crime or offense in this State after the date the background check was performed.

The bill provides that no person is permitted to serve as an officer, employee, or any other class of personnel in the department if that person is convicted of any crime or offense, as determined by a criminal history information background check conducted pursuant to the provisions of the bill, if the crime or offense involves dishonesty, breach of trust, money laundering, or any other crime or offense for which the commissioner determines is detrimental to the person’s employment in the department.

A recent report issued by the Office of the State Auditor, concerning the Department of Banking and Insurance, Administration, covering the period July 1, 2014 to September 30, 2017, contained a recommendation that the department seek legislation requiring criminal history background checks for certain employees of the department. This bill is a response to the recommendation, and requires department employees who are responsible for handling sensitive personal, financial, and proprietary information to undergo a criminal history record background check.