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  




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          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  





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          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  





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          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.