The Nevada Legislature has amended the state's consumer
reporting laws to remove restrictions on the information a credit
reporting agency may report to gaming operators. With the passage
of Senate Bill 409, a credit reporting agency is no longer
prohibited from reporting to gaming licensees information about a
job applicant regarding bankruptcies older than ten years, other
civil judgments older than seven years, and criminal convictions
older than seven years.
Sponsored by former Nevada Gaming Control Board Chairman Senator
Mark Lipparelli, SB409 is aimed at allowing gaming operators to
conduct more thorough background checks on prospective
employees.
Federal law (15 U.S.C. § 1681c) prohibits a credit reporting
agency from disclosing in an individual's credit report
information related to a bankruptcy filing that is more than ten
years old and certain other negative credit information, including
reports of a civil judgment or criminal proceeding that is more
than seven years old. Nevada Revised Statutes 598C.150 contained
similar prohibitions.
However, the federal law provides for certain exceptions,
including an exception for a credit report prepared in connection
with the employment of an individual whose salary will be greater
than $75,000.
Senate Bill 409 creates a similar exception in Nevada state law
for a credit report prepared for a gaming licensee in connection
with a person who is seeking employment with the licensee or
employment in a position connected directly with the licensee's
operations.
The bill also removes the prohibition against disclosing a record
of conviction of a crime which is more than seven years old,
meaning that there is no limitation of time for which such a record
may be disclosed.
These changes are effective upon bill passage, which means that
those seeking positions in Nevada's gaming industry should be
aware that this information will be made available to their
prospective employer and take extra care to proactively disclose
all bankruptcies, civil judgments, and criminal proceedings, no
matter the age of the event.
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