BILL ANALYSIS Ó
AB 1289
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CONCURRENCE IN SENATE AMENDMENTS
AB
1289 (Cooper)
As Amended August 19, 2016
Majority vote
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|ASSEMBLY: | |(June 1, 2015) |SENATE: |39-0 |(August 23, |
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(vote not relevant)
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|COMMITTEE VOTE: |11-1 |(August 30, |RECOMMENDATION: |concur |
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(U. & C.)
Original Committee Reference: PUB. S.
SUMMARY: Requires a Transportation Network Company (TNC) to
conduct a criminal background check for each participating
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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
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
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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
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 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. (Public Utilities Code
Section 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 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. (Penal Code Section 11105)
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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.
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.
(Penal Code Section 11105)
FISCAL EFFECT: According to the Senate Appropriations
Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
1)Background: California Constitution, Article XII establishes
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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
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.
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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:
0004995