Report 2018-132 Recommendation 12 Responses

Report 2018-132: Bureau of Gambling Control and California Gambling Control Commission: Their Licensing Processes Are Inefficient and Foster Unequal Treatment of Applicants (Release Date: May 2019)

Recommendation #12 To: Justice, Department of

To better align the revenue in the Gambling Fund with the costs of the activities that the fund supports, the bureau and the commission should conduct cost analyses of those activities by July 2020. At a minimum, these cost analyses should include the following:

-The entities' personnel costs, operating costs, and any program overhead costs.

-Updated time estimates for their core and support activities, such as background investigations.

-The cost of their enforcement activities.

Using this information, the bureau and commission should reset their regulatory fees to reflect their actual costs. Before conducting its fee study, the bureau should implement our recommendations to improve its processes for assigning applications, ensuring the completeness of applications, and developing time-reporting protocols.

Annual Follow-Up Agency Response From October 2024

The Bureau is in the process of amending its regulations to adjust the fees.

California State Auditor's Assessment of Annual Follow-Up Status: Pending


Annual Follow-Up Agency Response From May 2023

The Bureau is in the process of amending its regulations to adjust the fees.

California State Auditor's Assessment of Annual Follow-Up Status: Pending


Annual Follow-Up Agency Response From May 2022

The cost analysis and report are complete. The report was released to the public in September 2021. The Bureau is beginning the process to adjust the fees charged for background investigations.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented


Annual Follow-Up Agency Response From May 2021

The BGC has provided the information necessary for the CGCC's consultant to conduct the cost analysis. The consultant is in the final stages of preparing the report. By mid-year, we expect a completed cost analysis and a report recommending any necessary adjustments to fees from the consultant. Once the analysis has been reviewed and finalized, the BGC will work to make any appropriate adjustments to fees charged for background investigations and assist the CGCC in its efforts to make any necessary adjustments to other fees via legislation or regulations.

California State Auditor's Assessment of Annual Follow-Up Status: Pending


Annual Follow-Up Agency Response From October 2020

The BGC continues to work with the CGCC and its consultant to assist the BGC and the CGCC with the development of cost analyses for activities supported by the Gambling Control Fund. By year-end, we expect a completed cost analysis and a report recommending any necessary adjustments to fees from the consultant. Once the analysis has been reviewed and finalized, the BGC will work to make any appropriate adjustments to fees charged for background investigations and assist the CGCC in its efforts to make any necessary adjustments to other fees via legislation or regulations.

California State Auditor's Assessment of Annual Follow-Up Status: Pending


1-Year Agency Response

The BGC continues to work with the California Gambling Control Commission and its consultant to assist the BGC and the Commission with the development of cost analyses for activities supported by the Gambling Control Fund. Once information from the consultant is received and the analyses reviewed and finalized, BGC will begin the process to update its regulation addressing fees, as appropriate.

California State Auditor's Assessment of 1-Year Status: Pending


6-Month Agency Response

BGC is working with a consultant hired by the California Gambling Control Commission to assist with the cost analyses of activities supported by the Gambling Control Fund. BGC has provided documentation to the consultant and met to discuss BGC's costs associated with staff, operations, and overhead in all of its sections. Once the cost analyses are completed, BGC will review its regulatory fees and begin the process to reset its fees where appropriate.

California State Auditor's Assessment of 6-Month Status: Pending


60-Day Agency Response

CSA's recommendation was to complete cost analyses of activities that the Gambling Control Fund supports by July 2020. BGC is reviewing the costs currently associated with staff, operations, and overhead in all of its sections, including the appropriate allocation of costs between BGC's two funding sources. As recommended, before a complete analysis is initiated, BGC is implementing processes for assigning applications, ensuring the completeness of applications, and developing time-reporting protocols to ensure it is basing its analysis on the most current information.

California State Auditor's Assessment of 60-Day Status: Pending

The sequence of events the bureau describes is consistent with our recommendations. Once the bureau reports that it completed its cost analyses, we will review supporting documentation to evaluate implementation of this recommendation.


All Recommendations in 2018-132

Agency responses received are posted verbatim.