BILL ANALYSIS Ó AB 1289 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1289 (Cooper) As Amended August 19, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |80-0 |(June 1, 2016) |SENATE: | 39-0 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: PUB. S. SUMMARY: Requires a Transportation Network Company (TNC) to conduct a criminal background check for each participating driver. The Senate amendments delete the previous content of this bill and replace it with the following: 1)Require a TNC to conduct, or have a third party conduct, a local and national criminal background check for each participating driver that including the following: a) A multistate and multijurisdictional criminal records locator or other similar commercial nationwide database with validation; and AB 1289 Page 2 b) A search of the United States Department of Justice National Sex Offender Public Web site. 2)Prohibit a TNC from contracting with, employing, or retaining a driver if he or she meets either of the following criteria: a) Is currently registered on the United States Department of Justice National Sex Offender Public Web site; or b) Has been convicted of specified felonies. 3)Prohibit a TNC from contracting with, employing, or retaining a driver if he or she has been convicted of any of the following offenses within the previous seven years: a) Misdemeanor assault or battery; b) A domestic violence offense; c) Driving under the influence of alcohol or drugs; or d) A felony violation, as specified. 4)Subject a TNC that violates, or fails to comply with, the specified requirements, to a penalty of not less than $1,000 nor more than $5,000 for each offense. 5)Authorize an investigative consumer reporting agency to furnish an investigative consumer report to a TNC about a person seeking to become a participating driver, regardless of whether the participating driver is to be employee or an independent contractor of the TNC. EXISTING LAW: 1)Establishes the "Passenger Charter-Party Carriers Act," which AB 1289 Page 3 directs the CPUC to issue permits or certificates to Charter Party Carriers (CPCs), investigate complaints against carriers, and cancel, revoke, or suspend permits and certificates for specific violations. (Public Utilities Code Section (PUC) 5381 et seq.) 2)Defines a "transportation network company" to mean an organization, including, but not limited to, a corporation, limited liability company, partnership, sole proprietor, or any other entity, operating in California that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle. (PUC 5431) 3)Requires the Department of Justice (DOJ) to furnish state summary criminal history information to specified entities, if needed in the course of their duties and, when specifically authorized, federal-level criminal history information, upon showing of a compelling need, provided that when information is furnished to assist an agency, officer, or official of state or local government, a public utility, or any other entity in fulfilling employment, certification, or licensing duties, as specified. (Penal Code Section (PEN) 11105) 4)Authorizes the DOJ or any state or local law enforcement agency to require the submission of fingerprints for the purpose of conducting summary criminal history information checks that are authorized by law. (PEN 11105) 5)Requires, notwithstanding any other law, whenever state summary criminal history information is initially furnished, as specified, the DOJ to disseminate the following information: a) Every conviction rendered against the applicant. AB 1289 Page 4 b) Every arrest for an offense for which the applicant is presently awaiting trial, whether the applicant is incarcerated or has been released on bail or on his or her own recognizance pending trial. c) Every arrest for an offense for which the records of the DOJ do not contain a disposition or did not result in a conviction, provided that the DOJ first makes a genuine effort to determine the disposition of the arrest. However, information concerning an arrest shall not be disclosed if the records of the DOJ indicate or if the genuine effort reveals that the subject was exonerated, successfully completed a diversion or deferred entry of judgment program, or the arrest was deemed a detention. d) Every date and agency name associated with all retained peace officer or nonsworn law enforcement agency employee preemployment criminal offender record information search requests. e) Sex offender registration status of the applicant. (PEN 11105) FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs. COMMENTS: AB 1289 Page 5 1)Background: California Constitution, Article XII establishes the CPUC and grants it the authority to regulate public utilities. In addition, the CPUC has more limited authority over other corporations, including railroads, rail transit, and CPCs, among others. Beginning as early as 2009, a new model of transportation known as TNCs allowed patrons to prearrange transportation services through an online application on their smartphone or computer. Although TNCs do not neatly fall into the conventional definition of a CPC, the CPUC believes that TNCs are currently providing passengers transportation for compensation, and reasonably concludes that TNCs are CPCs, therefore, falling under the CPUC's existing jurisdiction over such services. 2)Criminal Background Checks: CPUC regulations require TNCs to run criminal background checks on all hired drivers, but it does not specify the parameters for which TNCs must go about doing these background checks. There are various forms of background checks ranging from simple name checks to fingerprint checks that are run through the Federal Bureau of Investigation database or through a state or local level law enforcement database. TNCs generally contract with third party firms that they argue provide a more comprehensive review necessary to ensure passenger safety. For example, Uber argues that its background screening process checks primary sources and court records going back seven years, in addition to other national databases. However, news reports continue to identify situations in which TNC drivers have been accused of criminal situations such as rape, assault, kidnapping, among others. The CPUC currently has a pending rulemaking process examining TNC regulations, including whether or not to require fingerprints as part of the TNC background checks. This bill would require TNCs to conduct, or have a third party conduct, a local and national criminal background check for each participating driver that includes: a) a multistate and AB 1289 Page 6 multijurisdictional criminal records locator or other similar commercial nationwide database with validation, and b) a search of the United States Department of Justice National Sex Offender Public Web site. This bill prohibits a TNC from contracting with, employing, or retaining a driver if he or she is currently registered on the United State Department of Justice National Sex Offender Public Web site, has been convicted of specified felonies, or, within the previous seven years, has been convicted of a misdemeanor assault or battery, a domestic violence offense, driving under the influence of alcohol or drugs, or a specified felony violation. This bill subjects a TNC that violates, or fails to comply with, the specified requirements, to a penalty of not less than $1,000 nor more than $5,000 for each offense. Analysis Prepared by: Edmond Cheung / U. & C. / (916) 319-2083 FN: 0004828