BILL ANALYSIS SENATE LOCAL GOVERNMENT COMMITTEE Senator Patricia Wiggins, Chair BILL NO: AB 307 HEARING: 6/17/09 AUTHOR: Cook FISCAL: No VERSION: 6/10/09 CONSULTANT: Detwiler LOCAL BUSINESS LICENSES Background and Existing Law After three children died in traffic accidents associated with ice cream trucks, the Legislature passed the "Destiny Nicole Stout Memorial Act" and required ice cream trucks to carry large warning signs and banned vending on streets with speed limits greater than 25 miles an hour (SB 2185, Soto, 2000). When operating in residential areas, state law requires commercial food vending vehicles to be stopped and lawfully parked. However, cities and counties can adopt additional public safety regulations regarding the time, place, and manner of selling food from commercial food vending vehicles (AB 2588, Calderon, 2008). State law allows cities and counties to regulate businesses by requiring local business licenses. Before cities and counties can issue local business licenses to contractors, they must verify that the person holds a state license from the Contractors' State License Board (AB 2823, Harvey, 1996). State law also allows cities and counties to use local business licenses to regulate massage parlors. If a city or county regulates massage parlors, state law requires local officials to deny a business license to a massage parlor if the owner or operators must register as sex offenders (AB 665, Salinas, 2005). The "Sex Offender Registration Act" requires everyone who has been convicted of specific crimes to register with local law enforcement officials "for the rest of his or her life while residing in California." It is a misdemeanor for a registered sex offender whose victim was under 16 years of age to be an employer, employee, independent contractor, or volunteer in a capacity where the registered sex offender works directly and in an unaccompanied setting with minor children on more than an incidental or occasional basis (AB 1900, Lieu, 2006). In 2008, the San Bernardino County Board of Supervisors AB 307 -- 6/10/09 -- Page 2 amended its business license ordinance to require applicants to disclose whether they or their employees must register as sex offenders. After investigation by the County Sheriff and the County's Environmental Health Services Division, County officials can issue business licenses only to applicants and employees who don't have to register as sex offenders. The licensees and their employees must carry their business licenses and government issued photo identification while working. Proposed Law Assembly Bill 307 prohibits a city or a county from issuing a business license to operate an ice cream truck to a registered sex offender whose victim was under 16 years of age. Comments 1. Safety first . The 2000 Destiny Nicole Stout Memorial Act, the 2006 Lieu bill, and San Bernardino County's 2008 ordinance show that state legislators and local elected officials worry about children's safety around ice cream trucks and their drivers. The bright anticipation of neighborhood kids waiting for the ice cream truck shouldn't be darkened by the fear of dangerous drivers. AB 307 enlists cities and counties' business license regulations to keep registered sex offenders away from vulnerable children. Just like the 1996 Harvey bill and the 2005 Salinas bill, legislators can harness local business license reviews to screen out people who shouldn't be working certain jobs. 2. Won't work . Cities and counties don't issue individual work permits, they license businesses. The person who owns the ice cream truck and holds a local business license may not be the person who drives the truck along city streets and county roads. AB 307 may prevent a registered sex offender from getting a local business license for an ice cream truck, but it won't prevent a registered sex offender from driving the owner's licensed ice cream truck. Unless a state law --- or a local ordinance like the one in San Bernardino County --- requires every ice cream vendor to pass a background check, there's no easy way to use local AB 307 -- 6/10/09 -- Page 3 business licenses to screen out registered sex offenders. The Committee may wish to consider whether the potential for future sex crimes is sufficient to require individual work permits for all California ice cream truck drivers. 3. Alternatives available . Rather than use a state law to mandate local business license offices to keep registered sex offenders away from ice cream trucks, the Committee may wish to consider these alternative approaches: Oklahoma's option. Other state legislatures have recently passed laws to keep registered sex offenders out of ice cream trucks. A new Oklahoma law, signed by Governor Brad Henry on June 2, requires ice cream companies to conduct annual name searches against the state's index of registered sex offenders and then maintain proof that their drivers aren't sex offenders. Drivers must carry notarized statements that they are not required to register. Failure to comply is a misdemeanor (SB 1020, Nichols, et al.). The Committee may wish to put the paperwork burden on the employer and the employees instead of on local officials. Clarify the Lieu law. Under the 2006 Lieu bill, it's already a crime for a registered sex offender whose victim was under 16 to work directly with kids in an unsupervised setting. If legislators think that law doesn't apply to ice cream truck drivers, the Committee may wish to clarify that statute instead of relying on local business licenses. Local control. As the San Bernardino County ordinance shows, local elected officials can already prevent registered sex offenders from getting food vendor permits. The San Bernardino County ordinance requires its Sheriff to investigate all license applications by peddlers and solicitors. But several county sheriffs want state legislators to rely on local business license workers to screen out registered sex offenders. The Committee may wish to leave this problem up to local elected officials. 4. Related bills . AB 307 is similar, but not identical, to AB 2169 (Cook, 2008) which would have prohibited local officials from granting ice cream truck business licenses to registered sex offenders but also would have required the State Sex Offender Management Board to study the need for state preemption. AB 307 doesn't contain the study requirement. The 2008 Cook bill died on the Assembly Appropriations Committee's suspense file. Earlier this year, the Senate Business, Professions, and Economic AB 307 -- 6/10/09 -- Page 4 Development Committee passed SB 496 (Maldonado) to deny state real estate licenses to registered sex offenders. On a double-referral, the Senate Public Safety Committee defeated SB 496, but granted reconsideration. 5. Double referred . The Senate Rules Committee referred AB 307 to two policy committees. First to the Senate Local Government Committee because the bill affects local business licenses, and then to the Senate Public Safety Committee which reviews sex crime bills. The 2006 Lieu bill went to the Senate Public Safety Committee. Assembly Actions Assembly Business & Professions Committee:10-0 Assembly Floor: 75-0 Support and Opposition (6/11/09) Support : County of San Bernardino, California District Attorneys Association, California State Sheriffs' Association, Mothers Against Sexual Predators, County Sheriffs of Alameda, Amador, Butte, Contra Costa, El Dorado, Fresno, Mariposa, Sacramento, San Bernardino, San Diego, Santa Barbara, Santa Cruz, Shasta, Tuolumne, Ventura, Yolo. Opposition : Unknown.