BILL ANALYSIS AB 2423 Page 1 Date of Hearing: May 7, 2008 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mark Leno, Chair AB 2423 (Bass) - As Introduced: February 21, 2008 Policy Committee: Business and Professions Vote: 10-0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires certain entities under the Department of Consumer Affairs (DCA) to study barriers to employment in specified licensed professions, specifies the terms and conditions under which a probationary license may be issued, and makes other changes related to licensing and discipline in order to encourage the employment of ex-offenders. Specifically, this bill: 1)Requires the following boards to report by September 1, 2010 on the effect of current law, regulations, and policy related to their respective licensing functions that create unnecessary barriers to employing people with criminal records in selected professions: a) Board of Vocational Nursing and Psychiatric Technicians, regarding employment of licensed vocational nurses and psychiatric technicians. b) Veterinary Medical Board, regarding registered veterinary technicians. c) Structural Pest Control Board, regarding licensed structural pest control operators. d) Bureau of Automotive Repair, regarding registered automotive repair dealers. e) Department of Consumer Affairs, regarding licensed private investigators. 2)Requires the entities in (1) to provide specified data, for calendar years 2003 through 2007, regarding applicants who disclosed a criminal record on their application, average length of time for license appeals, and information regarding AB 2423 Page 2 criteria applied in determining relation of a criminal record to licensure and determining whether rehabilitation is adequate. 3)Specifies the terms and conditions under which an initial license for the occupations above may be issued on probation, and specifies information a board must request from an applicant when considering issuing a probationary license based on criminal history. 4)Requires the entities in (1) to provide specified reasons for denying a license application based on criminal history. 5)Requires the entities in (1) to conduct a hearing regarding a license denial within 90 days of the applicant's request. 6)Authorizes an administrative law judge, when recommending that an entity in (1) revoke, suspend, or deny a licensee, to order the licensee to pay the board's costs of investigation and adjudication, and allows the board to enforce the order for payment in superior court. AB 2423 Page 3 FISCAL EFFECT 1)The Bureau of Automotive repair indicates minimum costs of $150,000 for two positions to complete the review and data gathering requirements for the report. [Vehicle Repair and Inspection Fund] 2)The Board of Vocational Nursing and Psychiatric Technicians would incur costs of around $200,000. [Vocational Nursing and Psychiatric Technicians] 3)The other three entities would incur costs of at least 100,000 each. [Veterinary Medical Board Contingent Fund, Structural Pest Control Fund, Private Investigator Fund] 4)Each of the five entities will incur costs of around $100,000 annually associated with the providing additional information to applicants denied licensure, conducting hearings in these cases within 90 days of receiving an applicant's request, and issuing probationary licenses. COMMENTS 1)Purpose . According to the author's office, "this bill protects workers whose criminal records have been expunged from being unfairly denied employment based on a DCA-regulated criminal background check. This bill balances consumer protection with the creation of opportunities for ex-offenders. It requires a study regarding the application and denial process for individuals seeking a license, allows the Board to issue a "probationary" license under specified conditions, requires the Board to provide specific information to applicants on the reason for license denial and requires the Board to conduct a hearing within 90 days of receiving an applicant's request." 2)Background . In 2005, the Assembly Business and Professions Committee held two hearings to examine issues related to this bill. The first explored the issue of barriers to employment for individuals with criminal records and the second examined obstacles to state licensure for individuals with criminal records, and the government's role in balancing consumer protection with creating opportunities for ex-offenders. This bill is in response to those hearings. AB 2423 seeks to address recidivism in California. Between AB 2423 Page 4 1980 and 2000, the state's adult prison population increased almost seven-fold, from 24,000 to nearly 160,000. The number of parolees released each year increased more than 10-fold over this time, from 12,000 to over 126,000. About 67% of the state's inmates are returning parolees, versus only 35% nationwide. 3)Prior Legislation . AB 861 (Bass)/Chapter 411 of 2006, requires the State Board of Barbering and Cosmetology to give specified additional information to a person who has been denied a license, and requires the board to conduct a hearing within 90 days of receiving an applicant's request for a hearing for a license denial. The bill authorizes the board to issue a probationary license to an applicant, subject to specified terms and conditions. In 2007, AB 1025 (Bass), which provided that a person may not be denied licensure based solely on a criminal conviction if the person has been rehabilitated, was vetoed. The governor's argued that the bill went too far in taking away a licensing entity's discretion to deny a license. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081