BILL ANALYSIS Ó AB 396 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 396 (Jones-Sawyer) - As Amended May 22, 2015 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|4 - 2 | |Committee: |Development | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill limits when a landlord may inquire about a prospective tenant's criminal record. Specifically, this bill: 1)Provides that it is an unlawful housing practice under the Fair Employment and Housing Act (FEHA) for the owner of rental AB 396 Page 2 housing to inquire about, or to require an applicant for rental housing to disclose, a criminal record during the initial application assessment phase, unless otherwise required by state or federal law. 2)Allows the owner of rental housing to disclose to the applicant on the rental housing application, the policy and screening criteria that the owner uses in deciding whether to rent or lease to an applicant with a criminal background. The disclosure must include a written disclosure that the applicant may provide evidence of inaccuracies within the applicant's criminal record or evidence of rehabilitation or other mitigating factors. 3)Provides that, following the successful completion of the initial application assessment phase, an owner of rental housing may request a criminal background check and consider an applicant's criminal record in deciding whether to rent or lease. 4)Provides that the request for a criminal background check must include a written disclosure that the applicant may provide evidence of inaccuracies within the applicant's criminal record or evidence of rehabilitation or other mitigating factors. 5)Provides that an owner of rental housing shall not be liable to any person for accepting or denying a person with a criminal record as a tenant if the owner follows the procedures provided in this bill in accepting that person as a tenant. FISCAL EFFECT: AB 396 Page 3 On-going annual costs to the Department of Fair Employment and Housing (DFEH) in the range of $100,000 (GF) for up to one position to handle the increased enforcement workload, assuming a 5% increase in complaint filings. COMMENTS: 1)Purpose. In response to prison overcrowding directives as well as recent public safety reforms such as AB 109 (Budget Committee), Chapter 15, Statutes of 2011, and Proposition 47, unprecedented numbers of formerly incarcerated individuals are returning to our communities. The author points out that, in light of realignment, redemptive policies should be implemented to ensure people with criminal records are not blocked from being productive citizens. The author explains that this bill seeks to reduce recidivism, keep families together, reduce homelessness and unfair discrimination. 2)Background. FEHA prohibits employment and housing discrimination based on the protected classes of race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, or genetic information. FEHA further provides that it is a civil right to be able to pursue and maintain housing or employment without facing discrimination. The Department of Fair Employment and Housing (DFEH) is the state agency responsible for enforcing FEHA and other civil rights laws. This bill would not create a separate protected class under FEHA, but would limit when and how a landlord may consider a prospective tenant's criminal record when determining whether AB 396 Page 4 to rent to the applicant. 3)Recent Amendments. In response to opposition arguments, the author took amendments to: a) Remove the 14-day period for the applicant to provide evidence of inaccuracies in the applicant's criminal record or evidence of rehabilitation and instead require the owner to disclose to the applicant that the applicant can provide such evidence upon requesting a criminal background check. b) Remove the requirement that an owner must provide an applicant with written notification of their decision to deny an application and list the reasons. c) Allow owners to disclose on the initial application their policy and screening criteria regarding leasing to an applicant with a criminal background. d) Remove liability for owners if they follow the notification procedures. 1)Related legislation: AB 1056 (Atkins), pending in this Committee, would direct the Board of State and Community Corrections to develop a Second Chance Program to provide mental health services and housing to formerly incarcerated individuals. 2)Prior Legislation. a) AB 1650 (Jones-Sawyer), Chapter 880, Statutes of 2014, AB 396 Page 5 with certain exceptions, provides that state contractors must determine an on-site construction-related job applicant's minimum qualifications before obtaining and considering information regarding the applicant's criminal conviction history. b) AB 218 (Dickinson), Chapter 699, Statutes of 2013, with certain exceptions, 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. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081