BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1650| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 1650 Author: Jones-Sawyer (D) Amended: 8/18/14 in Senate Vote: 21 SENATE GOVERNMENTAL ORGANIZATION COMMITTEE : 7-1, 6/10/14 AYES: Correa, Cannella, De León, Galgiani, Hernandez, Padilla, Torres NOES: Vidak NO VOTE RECORDED: Berryhill, Lieu, Vacancy SENATE JUDICIARY COMMITTEE : 5-1, 6/17/14 AYES: Jackson, Corbett, Lara, Leno, Monning NOES: Vidak NO VOTE RECORDED: Anderson SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/14/14 AYES: De León, Hill, Lara, Padilla, Steinberg NO VOTE RECORDED: Walters, Gaines ASSEMBLY FLOOR : 58-16, 5/29/14 - See last page for vote SUBJECT : Public contracts: bidders: employment practices SOURCE : Author DIGEST : This bill requires a person bidding on certain state contracts to certify that the person will not ask job applicants to disclose information concerning their conviction history. CONTINUED AB 1650 Page 2 ANALYSIS : Existing law: 1.Regulates, under the State Contract Act, contracting between state agencies and private contractors, and outlines requirements for bidding and awarding of contracts for projects. 2.Defines projects to include the construction or other improvement to a state structure, building, road or other state improvement of any kind that will exceed a total cost of $250,000 for the 2010 calendar year, as adjusted every two years. 3.Prohibits employers from asking applicants for employment to disclose information concerning convictions that have been sealed, expunged, or statutorily eradicated, and certain marijuana-related convictions if the convictions are more than two years old. 4.Prohibits a state or local agency from asking an applicant to disclose information regarding a criminal conviction, except as specified, until the agency has determined the applicant meets the minimum employment qualifications, as stated in any notice issued for the position. This bill: 1.Requires any person submitting a bid to the state on a contract involving onsite construction-related services to certify that the person will not ask an applicant for onsite construction-related employment to disclose orally or in writing information concerning the applicant's conviction history. 2.Does not require this certification if the bidder or state agency is otherwise required by state or federal law to conduct a conviction history background check, or in any contract position with a "criminal justice agency." 3.Does not require this certification when the person submitting the bid obtains workers from a hiring hall pursuant to a bona fide collective bargaining agreement. CONTINUED AB 1650 Page 3 Comments According to the author, "men and women released from prison often face daunting obstacles as they return home to their communities, however none can be more difficult than finding employment. Former prisoners are often concentrated in a relatively small number of distressed urban neighborhoods that lack the resources needed to assist them in the reentry process. Not surprisingly, after being unable to find a job, many end up returning to prison, a disastrous result for them, their families, communities, taxpayers, and public safety. "Across California, felony convictions are often treated as an automatic disqualification in employment application procedures. Without much justification individuals with criminal records are excluded from being considered for employment. According to the California Research Bureau, California parolees have an unemployment rate of 80%. "In order to fight this alarming trend six states, 32 U.S. cities and 8 cities and counties across California including San Francisco, Richmond & Alameda County have removed the conviction history box from job applications in public employment and contractors who conduct business with the public. These entities have recognized that stable employment is critical to a successful transition into the community. "Removing the conviction history box can give thousands of individuals a fair shot at employment while simultaneously decreasing the recidivism rate, increasing economic activity and improving public safety." Scope and applicability . According to the Senate Governmental Organization Committee, this bill concerns when, not whether, state contractors may obtain criminal conviction information from applicants for on-site construction-related employment. Under this bill, this information may be sought and considered after the state contractor has determined that the applicant meets the minimum qualifications for the job. This bill exempts contract positions in all criminal justice agencies, as well as all positions with any employer for which a criminal background investigation is legally required. CONTINUED AB 1650 Page 4 FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: This bill potentially dissuades noncompliant contractors from bidding on certain state public works contracts. To the extent this occurs, competition will be reduced, resulting in potentially higher contract costs than would have occurred otherwise. The amount of the increase is unknown, but given the volume at state public works contracts, could exceed $150,000 annually. The state may incur investigation-related costs associated with information that a bidder was not in compliance with this bill's requirements. The number of such cases is unknown, but could result in significant investigative and legal costs. If a state contractor was later found to have been in violation of this bill's requirements, there could be additional costs to void the contract and rebid the project. SUPPORT : (Verified 8/13/14) Legal Services for Prisoners with Children ARGUMENTS IN SUPPORT : Supporters note that California joined a number of other states and local governments by adopting AB 218 (Dickinson, Chapter 669, Statutes of 2013) which established a similar but more expansive policy for state and local government as this bill proposes for state contractors. ASSEMBLY FLOOR : 58-16, 5/29/14 AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Dababneh, Daly, Dickinson, Eggman, Fong, Fox, Frazier, Garcia, Gomez, Gonzalez, Gordon, Gorell, Gray, Hall, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Lowenthal, Medina, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Patterson, Perea, John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber, Wieckowski, Williams, Yamada, Atkins NOES: Achadjian, Allen, Conway, Dahle, Donnelly, Beth Gaines, CONTINUED AB 1650 Page 5 Gatto, Grove, Hagman, Harkey, Logue, Maienschein, Mansoor, Wagner, Waldron, Wilk NO VOTE RECORDED: Bigelow, Cooley, Linder, Melendez, Nestande, Vacancy MW:nl 8/17/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED