BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 218
                                                                  Page 1

          Date of Hearing:  April 2, 2013

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                Bob Wieckowski, Chair
                 AB 218 (Dickinson) - As Introduced: February 4, 2013
                                           
                               As Proposed to be Amended
                                           
          SUBJECT  :  PUBLIC EMPLOYMENT: CRIMINAL CONVICTION HISTORY

           KEY ISSUES  :

          1)SHOULD STATE AND LOCAL AGENCIES GENERALLY BE REQUIRED TO  
            POSTPONE ASKING ABOUT AN APPLICANT'S PRIOR CRIMINAL  
            CONVICTIONS UNTIL AFTER THEY HAVE DETERMINED THAT THE  
            APPLICANT MEETS THE MINIMUM QUALIFICATIONS FOR THE JOB IN  
            ORDER TO AVOID INAPPROPRIATELY EXCLUDING QUALIFIED JOB  
            SEEKERS?  

          2)SHOULD LAW ENFORCEMENT AGENCIES BE EXEMPTED FROM THIS RULE,  
            ALONG WITH ALL POSITIONS WITH ANY EMPLOYER FOR WHICH CRIMINAL  
            BACKGROUND CHECKS ARE REQUIRED?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS
          
          This bill concerns when - not whether - state and local  
          governments may obtain criminal conviction information from  
          applicants for employment.  Under the bill, this information may  
          be sought and considered after the agency has determined that  
          the applicant meets the minimum qualifications for the job.  The  
          bill exempts all criminal justice agencies, as well as all  
          positions with any agency for which a criminal background  
          investigation is required.  Supporters note that the recently  
          enacted "realignment" of California's criminal justice system  
          under AB 109 seeks to produce budgetary savings by reducing  
          recidivism and promoting rehabilitation, and that employment of  
          eligible people with a conviction history is key to the success  
          of realignment because stable employment significantly lowers  
          recidivism.  Supporters argue that the stigma of a past criminal  
          record discourages otherwise qualified individuals from applying  
          for work when job applications inquire about conviction history.  
           They note that six states and over 40 U.S. cities and counties  
          have removed the conviction history inquiry from initial job  








                                                                  AB 218
                                                                  Page 2

          applications in public employment, and that the State Personnel  
          Board under Governor Schwarzenegger similarly removed the  
          question from job applications for state positions.

          Opponents argue that because the bill does not affect whether  
          criminal convictions can be considered, the bill simply requires  
          agencies to waste public time and resources screening initial  
          applications for minimum eligibility that will almost certainly  
          be rejected once an applicant's criminal history is made known,  
          which they argue will cause unnecessary delays and increased  
          costs in hiring procedures without a discernible public benefit.  
           Other opponents argue that each agency should be able to decide  
          for itself which positions are exempted.


           SUMMARY  :  Provides that state and local agencies must determine  
          a job applicant's minimum qualifications before obtaining and  
          considering information regarding the applicant's criminal  
          conviction history.  Specifically,  this bill  :  

          1)Provides that a state or local agency shall not ask an  
            applicant for employment to disclose, orally or in writing,  
            information concerning the conviction history of the  
            applicant, including any inquiry about conviction history on  
            any employment application until the agency has determined the  
            applicant meets the minimum employment qualifications, as  
            stated in any notice issued for the position.

          2)Exempts from this provision all positions for which a state or  
            local agency is otherwise required by law to conduct a  
            conviction history background check, any position within a  
            criminal justice agency, as that term is defined in Section  
            13101 of the Penal Code, and any individual working on a  
            temporary or permanent basis for a criminal justice agency on  
            a contract basis or on loan from another governmental entity.

          3)Specifies that this section shall not be construed to prevent  
            a state or local agency from conducting a conviction history  
            background check after complying with the provisions above.

           EXISTING LAW  :  

           1)Prohibits any employer from inquiring into or requiring  
            disclosure of arrests or detentions of applicants that did not  
            result in conviction.  (Labor Code Section 432.7.)








                                                                  AB 218
                                                                  Page 3


          2)Provides pursuant to federal anti-discrimination law that a  
            facially neutral hiring policy excluding all applicants with  
            conviction records will disproportionately impact persons of  
            color, and, therefore, may violate Title VII of the Civil  
            Rights Act of 1964.  Such a policy will pass muster if it is  
            job-related and consistent with business necessity.  (See EEOC  
            Enforcement Guidance, "Consideration of Arrest and Conviction  
            Records in Employment Decisions Under Title VII of the Civil  
            Rights Act of 1964" (2012)(available at  
            http://eeoc.gov/laws/guidance/arrest_conviction.cfm).)

          3)State law likewise prohibits race discrimination in employment  
            and provides that a violation may be found where an employment  
            policy or practice has a disproportionate impact on a racial  
            group unless the policy or practice is job related and  
            consistent with business necessity.  (See Government Code  
            section 12926 et seq.)

           COMMENTS  :  According to the author, "AB 218 will help to level  
          the playing field for qualified Californians seeking employment  
          and will promote public safety by reducing unnecessary job  
          barriers for the nearly seven million adult Californians with a  
          criminal record.  Thousands of qualified job applicants in our  
          state are plagued by old or minor records and discouraged from  
          applying to employment because a 'box' on job applications  
          requires criminal history information that leads many employers  
          to unfairly reject job applications.  AB 218 removes unnecessary  
          obstacles to employment for skilled, qualified workers who have  
          turned their lives around.  All of California will benefit when  
          people with criminal records are no longer shut out of jobs and  
          can financially support their families and contribute to a  
          strong economic recovery."

           This Bill Seeks To Promote Rehabilitation and Reduce Recidivism  
          Consistent With The Goals Of Realignment.   The author explains  
          the reason for the bill as follows:

               "Realignment" (AB 109) of California's criminal justice  
               system seeks to produce budgetary savings by reducing  
               recidivism and promoting rehabilitation. Employment of  
               eligible people with a conviction history is key to the  
               success of realignment at the local level, as studies have  
               shown that stable employment significantly lowers  
               recidivism and promotes public safety.  








                                                                  AB 218
                                                                  Page 4


               Research has shown that people who are employed after  
               release from prison are less likely to return. One study  
               found that only 8% of those who were employed for a year  
               committed another crime compared to that state's 54%  
               average recidivism rate.  Increased employment and  
               increased wages are also associated with lower crime rates  
               in states. Based on U.S. Bureau of Justice Statistics and  
               the U.S. Census, the National Employment Law Project  
               estimates that there are almost 7 million adults in  
               California with criminal records on file with the state.  
               One prominent researcher has found that a criminal record  
               reduces the likelihood of a job callback or offer by nearly  
               50 percent, an effect even more pronounced for African  
               American men than for white men (see answer to question 10  
               under "People of color are disproportionately impacted by  
               criminal record screening in employment"). The stigma of a  
               past criminal record also discourages otherwise qualified  
               individuals from applying for work because of a conviction  
               history inquiry on the job application. 

               No healthy economy can sustain a large and growing  
               population of unemployed workers, especially in those  
               communities already hard hit by joblessness. Indeed, the  
               impact on the economy is staggering. The cost of  
               corrections at each level of government in the United  
               States consumed $74 billion a year in 2007, and the reduced  
               output of goods and services of people with felonies and  
               prison records is estimated at between $57 and $65 billion  
               in losses nationally. When hard-working Californians are  
               able to support themselves and their families, our  
               communities will reap the economic benefits.  

               Six states and over 40 U.S. cities and counties responded  
               to this growing societal challenge by removing the  
               conviction history inquiry from initial job applications in  
               public employment. Under Governor Schwarzenegger,  
               California State Personnel Board removed the question from  
               job applications for state positions effective June 25,  
               2010 (they then added a criminal history supplemental  
               questionnaire for exempted positions). 

               Mayor Bloomberg adopted this policy in New York City.  
               Currently, the following California cities and counties do  
               not inquire into an applicant's criminal history on the  








                                                                  AB 218
                                                                  Page 5

               initial application: Alameda County, Berkeley, City of East  
               Palo Alto, Compton, Oakland, Richmond, Santa Clara County,  
               City of San Diego, and San Francisco City and County.  

               AB 218 removes any inquiry into a conviction history on an  
               initial job application and delays any background check  
               until the employer has determined that the applicant's  
               qualifications meet the job requirements. The provision  
               does not apply to positions for which the agency is  
               required by law to conduct a criminal background check,  
               such as positions working with children, the elderly or  
               disabled, and other sensitive positions, and any positions  
               within criminal justice agencies. The bill will not alter  
               or impact any job qualifications or the agency's legal  
               discretion to hire the most qualified applicant for the job  
               position. The agency will also retain its discretion, in  
               compliance with existing law, to determine whether a job  
               position requires a criminal background check.

               In summary, consistent with "realignment" of the state's  
               criminal justice system, AB 218 strives to reduce  
               unnecessary barriers to employment for the estimated one in  
               four adult Californians with a conviction history, many of  
               whom are struggling to find work. Not only will this  
               practice increase public safety, but it will also help fuel  
               a strong economic recovery.  

               In 2011, U.S. Attorney General Eric Holder wrote to every  
               state Attorney General, with a copy to every Governor,  
               asking them to assess their state's collateral consequences  
               and determine if any should be eliminated "so that people  
               who have paid their debt to society are able to live and  
               work productively." Following the direction of the Attorney  
               General Holder, California can take an important step  
               toward becoming a model employer, leading the way for the  
               private sector to allow people with a conviction history to  
               compete fairly for employment without compromising safety  
               and security on the job.   

           This Bill Seeks To Affect Only When - Not Whether - Employers  
          May Consider Criminal Conviction History.   This bill does not  
          prohibit or otherwise limit a state or local agency from  
          conducting a criminal background check or making employment  
          decisions on the basis of an applicant's prior convictions.  It  
          simply restricts when that inquiry may be conducted.  Under the  








                                                                  AB 218
                                                                  Page 6

          bill, a covered employer may ask an applicant for employment to  
          disclose information concerning his or her conviction history,  
          and may conduct a criminal background investigation, so long as  
          they do so after they have determined the applicant meets the  
          minimum employment qualifications.  

          Employers should of course continue to approach these decisions  
          with care to avoid violating employment discrimination laws,  
          which require that job requirements be justified when they fall  
          more heavily on some groups.  The bill does not affect existing  
          law requiring that employment standards be related to the job. 

          Supporters note that people of color are more likely than whites  
          to possess a criminal record and are especially hard hit by  
          criminal record screening in employment.  Supporters cite two  
          prominent studies which found that a criminal record reduces the  
          likelihood of a job callback or offer by about 50 percent (28  
          percent vs. 15 percent).  This criminal record "penalty" was  
          substantially greater for African Americans and Latinos in the  
          test pool.  (Devah Pager, "The Mark of a Criminal Record,"  
          American Journal of Sociology 108.5 (2003) at 957-60(available  
          at http://www.princeton.edu/~pager/pager_ajs.pdf); Devah Pager,  
          Bruce Western, & Bart Bonikowski,"Discrimination in a Low Wage  
          Labor Market: A Field Experiment," American Sociological Review  
          74 (October, 2009)at 777-779 ( available at  
          http://www.princeton.edu/~pager/ASR_pager_etal09.pdf).)

          The U.S. Equal Employment Opportunity Commission (EEOC) has  
          recognized in policy guidance issued in April 2012 that there  
          are observable racial disparities in the criminal justice  
          system.  Because criminal background checks may have a disparate  
          impact on people of color, federal employment discrimination law  
          prohibits no-hire policies against people with criminal records.  
           An employer's consideration of a conviction history may pass  
          muster if an individualized assessment is made, taking into  
          account whether the conviction is job-related and the time  
          passed since the conviction.  An employer therefore risks  
          violating federal civil rights laws when it cannot articulate an  
          objective and well-supported reason why the use of a criminal  
          record to disqualify an applicant is related to the functions of  
          the job.  Thus, removing the inquiry about conviction history  
          from the initial job application promotes a case-by-case  
          assessment of the applicant, which is more consistent with the  
          law.  In keeping with the policy embodied by AB 218, the EEOC  
          guidance states: "As a best practice, and consistent with  








                                                                  AB 218
                                                                  Page 7

          applicable laws, the Commission recommends that employers not  
          ask about convictions on job applications and that, if and when  
          they make such inquiries, the inquiries be limited to  
          convictions for which exclusion would be job related for the  
          position in question and consistent with business necessity."

           Exemption For All Criminal Justice Agencies and Any Positions  
          Where Background Check Required.   Moreover, the bill contains a  
          broad exemption for any position for which a state or local  
          agency is otherwise required by law to conduct a conviction  
          history background check, as well as any position within a  
          criminal justice agency or to any individual working on a  
          temporary or permanent basis for a criminal justice agency on a  
          contract basis or on loan from another governmental entity.   
          This bill uses the existing definition of "criminal justice  
          agencies," those agencies at all levels of government that  
          perform as their principal functions, activities which either  
          relate to the apprehension, prosecution, adjudication,  
          incarceration, or correction of criminal offenders or relate to  
          the collection, storage, dissemination or usage of criminal  
          offender record information.  (Penal Code Section 13101.)

          Other opponents recognize that the bill provides exemptions, but  
          argue that these are too limiting. 
           
          No Express Private Right of Action And No Apparent  
          Administrative Enforcement Mechanism  .  This bill does not  
          contain a private right of action, nor does it provide for  
          administrative enforcement through the Division of Labor  
          Standards Enforcement.


           There Is A Substantial Population Of People With Criminal  
          Records In The United States And In California Who May Be  
          Affected By This Bill.   According to the bill's co-sponsor, the  
          National Employment Law Project (NELP), an estimated 1 in 4 U.S.  
          adults has a criminal record that would appear on a routine  
          background check.  (See "65 Million Need Not Apply: The Case for  
          Reforming Criminal Background Checks," at footnote 2( available  
          at  
          http://www.nelp.org/page/-/SCLP/2011/65_Million_Need_Not_Apply.pd 
          f?nocdn=1).)  Using the same methodology outlined in this  
          report, NELP estimates there are approximately 7 million  
          Californian adults with criminal records.  According to  
          supporters, research has demonstrated that employment is a key  








                                                                  AB 218
                                                                  Page 8

          factor in reducing recidivism and ensuring positive public  
          safety outcomes.  Among other examples, supporters cite a recent  
          study of former prisoners in Ohio, Texas, and Illinois where  
          researchers found that inmates who held a job while in prison  
          and those who participated in job-training programs while  
          incarcerated had better employment outcomes after release.  In  
          addition, inmates who were employed and earning higher wages  
          after release were less likely to return to prison the first  
          year out.  (Christy Visher, Sara Debus & Jennifer Yahner,  
          Employment after Prison: A Longitudinal Study of Releasees in  
          Three States, Justice Policy Center Research Brief (Oct.  
          2008)(available at  
          http://www.urban.org/UploadedPDF/411778_employment_after_prison.p 
          df).)  Supporters argue that the economy is negatively impacted  
          by the inability of people with criminal records to find gainful  
          employment, supporting themselves and their families.  


           Similar Laws In California Local Governments And Other States.    
          The author states that human resources departments in various  
          cities and counties have comparable policies and have found them  
          beneficial.  The author particularly notes that among these are  
          the East Palo Alto Police Department, Alameda County, the City  
          of Oakland and the City of Richmond.

          The author reports that there are existing laws in other states  
          that remove the conviction history inquiry from the initial job  
          application and delay the conviction history inquiry until later  
          in the hiring process.  According to the author, each of these  
          laws goes much further than AB 218.  Among the states with  
          similar laws are Colorado, Connecticut, Hawaii, Massachusetts,  
          Minnesota, and New Mexico. 
           
          ARGUMENTS IN OPPOSITION  :  The California District Attorneys  
          Association states:  

                We understand that this bill allows a local agency to  
               consider an applicant's criminal history after the  
               applicant's qualifications have been screened and the  
               agency has determined the applicant meets the minimum  
               employment requirements.  Unfortunately, all this bill will  
               do is ensure that local agencies waste public time and  
               resources screening initial applications for minimum  
               eligibility that will almost certainly be rejected once an  
               applicant's criminal history is made known.  Certainly,  








                                                                  AB 218
                                                                  Page 9

               there are positions in state and local government for which  
               a criminal background check is not required but into which  
               it is inappropriate to hire a person with specific criminal  
               histories.  Additionally, there may be employees who work  
               in a criminal justice agency who are not employed by the  
               agency itself.  Such employees would not be excluded by the  
               bill's provisions.

               We understand your desire to increase employment  
               opportunities for persons with criminal convictions, but it  
               seems unlikely that this bill will accomplish that  
               objective.  The only sure outcome is unnecessary delays and  
               increased costs in hiring procedures.  At a time when local  
               governments are just as, if not more than, cash-strapped as  
               the state, it seems unwise to guarantee the pointless  
               expenditure of public time and resources toward no  
               discernible public benefit.  
           
           The California Special Districts Association states in relevant  
          part:

               AB 218 provides exemptions to delayed criminal history  
               screening of potential hires for two types of positions:  
               those who are required to have a criminal background check  
               pursuant to state law and those with criminal justice  
               related duties.  However, we find this far too limiting.  
               Special districts have employees that handle sensitive  
               personnel information, access financial records and public  
               funds, or enter ratepayers' property as part of their job  
               duties. Hiring an individual with a relevant criminal  
               history could compromise public trust. Furthermore, it  
               simply doesn't make sense to delay criminal record  
               verification when a prior conviction, based on local hiring  
               protocols, would make a candidate ineligible. Therefore, we  
               propose allowing local government agencies to adopt formal  
               policies that would allow criminal record information  
               requests at the initial phase of employment for positions  
               specified by the agency.
           
          Author's Proposed Technical Amendments.   In order to better  
          clarify the intent of the measure, the author proposes the  
          following technical amendments:

          (a) A state or local agency shall not ask an applicant for  
          employment to disclose,  orally or in writing,   through any  








                                                                  AB 218
                                                                  Page 10
        
          written form or verbally,  information concerning the  criminal   
           conviction  history of the applicant  , including   or include  any  
          inquiry  about conviction history  on any  initial  employment  
          application  .  ,  A state or local agency may inquire into or  
          consider an applicant's criminal history   after   until   the  
          applicant's qualifications have been screened and  the agency has  
          determined the applicant meets the minimum employment  
           requirements   qualifications  , as stated in any notice issued for  
          the position.

          (b) This section shall not apply to a position for which a state  
          or local agency is otherwise required by law to conduct a  
          criminal   conviction  history background check, to any position  
          within a criminal justice agency, as that term is defined in  
          Section 13101 of the Penal Code, or to any individual working on  
          a temporary or permanent basis for a criminal justice agency on  
          a contract basis or on loan from another governmental entity.

          (c) This section shall not be construed to prevent a state or  
          local agency from conducting a  criminal   conviction  history  
          background check after complying with all of the provisions of  
          subdivision (a).

           Prior and Pending Related Legislation.   A related measure, AB  
          870 (Jones-Sawyer), would enact a similar policy for state  
          contractors.  That bill has been referred to the Committee.  A  
          prior measure by the author last year, AB 1831, was held in the  
          Senate Governance and Finance Committee.

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 

           National Employment Law Project (co-sponsor)
          Legal Services for Prisoners With Children (co-sponsor)
          PICO California (co-sponsor)
          All of Us or None, Los Angeles/Long Beach (co-sponsor)
          AFSCME (co-sponsor)
          ACLU of California
          All of Us or None -Sacramento Chapter
          Amalgamated Transit Union, California
          A New Way of Life Reentry Project
          Bayview Baptist Church
          City of Berkeley
          California Attorneys for Criminal Justice








                                                                  AB 218
                                                                  Page 11

          California Conf. of Machinists
          California Communities United Institute
          California Coalition for Women Prisoners
          California Drug Counseling, Inc.
          California Employment Lawyers Association
          California Labor Federation
          California Partnership
          California Prison Focus
          California Public Defenders Association
          California Teamsters Public Affairs Council
          Californians United for a Responsible Budget
          Californians for Safety and Justice
          Chrysalis
          City of Carson Mayor, Jim Dear
          Contra Costa Interfaith Supporting Community Organization
          Coalition on Homelessness 
          Crossroad Bible Institute
          Drug Policy Alliance
          East Bay Community Law Center
          East Bay Alliance for a Sustainable Economy
          Engineers and Scientists of CA
          Equal Justice Society
          Equal Rights Advocates
          Friends Committee on Legislation of California
          Homies Unidos
          Justice First, LLP
          Justice Not Jails
          Justice Now 
          Lawyers' Committee for Civil Rights of the San Francisco Bay  
          Area
          Legal Aid Society-Employment Law Center
          Los Angeles Alliance for a New Economy
          Los Angeles Regional Reentry Partnership
          LA Voice
          Mexican American Legal Defense and Educational Fund (MALDEF)
          Much More Bounce Inc./Ministries
          National Association of Social Workers - Women's Council of the  
          California Chapter
          National Council of La Raza
          National H.I.R.E. Network
          NMT/The Ripple Effects
          Oakland Rising
          Pacific Institute
          Prof. and Tech. Engineers, Local 21
          City of Richmond








                                                                  AB 218
                                                                  Page 12

          Richmond Chief of Police, Chris Magnus
          Saffron Strand, Inc.
          Sanmina Corporation
          San Francisco Public Defender Jeff Adachi
          SEIU Local 1000
          Sentencing Project
          Starting Over Inc.
          San Francisco District Attorney George Gasc�n
          The Training Center
          Utility Workers Union of America, Local 132
          United Food and Commercial Workers Union, Western States
          UNITE HERE
          Western Center on Law & Poverty
          Wendy Still, San Francisco Chief Adult Probation Officer
          Women's Foundation of California
          Youth Justice Coalition

           Opposition 
           
          Association of California Cities - Orange County
          California District Attorneys Association
          California Special Districts Association
          Desert Water Agency
          Rural County Representatives of California
          Southwest California Legislative Council
           
          Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334