BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 2777


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          ASSEMBLY THIRD READING


          AB  
          2777 (Nazarian)


          As Amended  May 31, 2016


          Majority vote


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Public Safety   |7-0  |Jones-Sawyer,         |                    |
          |                |     |Melendez, Lackey,     |                    |
          |                |     |Lopez, Low, Quirk,    |                    |
          |                |     |Santiago              |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Utilities       |8-3  |Dahle, Eggman,        |Gatto, Patterson,   |
          |                |     |                      |Chávez              |
          |                |     |                      |                    |
          |                |     |Cristina Garcia,      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Eduardo Garcia,       |                    |
          |                |     |Obernolte, Quirk,     |                    |
          |                |     |Santiago, Williams    |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |14-2 |Gonzalez, Bloom,      |Bigelow, Chang      |
          |                |     |Bonilla, Bonta,       |                    |
          |                |     |Calderon, Daly,       |                    |








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          |                |     |Eggman, Eduardo       |                    |
          |                |     |Garcia, Roger         |                    |
          |                |     |Hernández, Holden,    |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Weber, Wood           |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
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          SUMMARY:  Allows, but does not require, a "transportation  
          network company" (TNC) to ask the Department of Justice (DOJ) to  
          provide state summary criminal history information for its  
          employees and contractors. Specifically, this bill:  
          1)Authorizes a TNC to submit to the DOJ the fingerprint images  
            and related information required by the DOJ to process records  
            of state convictions and state arrests for a person employed,  
            retained, contracted, or otherwise compensated to perform  
            services coordinated by that company.
          2)Requires the DOJ to provide a state-level response to a TNC  
            upon a request made pursuant to the above provision.


          3)Requires the TNC to ask DOJ for subsequent notification  
            service for persons for whom fingerprint images and related  
            information have been submitted.


          4)Requires the DOJ to charge a TNC a fee which sufficiently  
            covers the cost of processing such a request.


          5)Defines a "TNC" as it is already defined in the Public  
            Utilities Code. 


          EXISTING LAW:  










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          1)Requires the DOJ to furnish state summary criminal history  
            information to specified entities, if needed in the course of  
            their duties, 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,  
            specified restrictions listed in the Labor Code are followed.   

          2)Allows the DOJ to furnish state summary criminal history  
            information to specified entities and, when specifically  
            authorized, federal-level criminal history information, upon a  
            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, specified restrictions listed in the Labor Code are  
            followed.  


          3)Allows DOJ to charge a fee to reimburse department costs, and  
            a surcharge to fund system maintenance and improvements,  
            whenever state summary criminal history information is  
            furnished as the result of an application and is to be used  
            for employment, licensing, or certification purposes.  Allows,  
            notwithstanding any other law, any person or entity required  
            to pay a fee to DOJ for information received under this  
            provision to charge the applicant a fee sufficient to  
            reimburse the person or entity for this expense.  


          4)States that, notwithstanding any other law, the DOJ may  
            require the submission of fingerprints for the purpose of  
            conducting criminal history information checks that are  
            authorized by law.  


          5)States that, notwithstanding any other law, whenever state  
            summary criminal history information is initially furnished as  
            the result of an application by an agency, organization, or  








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            individual or by an authorized transportation company, as  
            specified, and the information is to be used for employment,  
            licensing, or certification purposes, then DOJ shall  
            disseminate the following information:


             a)   Every conviction rendered against the applicant, except  
               a conviction for which relief has been granted pursuant to  
               Penal Code Section 1203.49; 
             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; and,


             c)   Sex offender registration status of the applicant.  


          6)Authorizes, notwithstanding any other law, a human resource  
            agency or an employer to request from DOJ records of all  
            convictions or any arrest pending adjudication involving  
            specified offenses of a person who applies for a license,  
            employment, or volunteer position, in which he or she would  
            have supervisory or disciplinary power over a minor or any  
            person under his or her care.  Requires DOJ to furnish the  
            information to the requesting employer and also send a copy of  
            the information to the applicant.  
          7)Allows, notwithstanding any other law, a contract or  
            proprietary security organization to request criminal history  
            information concerning its prospective employees, as  
            specified.  


          8)Punishes as a misdemeanor any person authorized by law to  
            receive a record or information obtained from a record who  
            knowingly furnishes the record or information to a person who  
            is not authorized by law to receive the record or information.  
             









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          9)Prohibits an employer, whether a public agency or private  
            individual or corporation, to ask an applicant for employment  
            to disclose, through any written form or verbally, information  
            concerning an arrest or detention that did not result in  
            conviction, or information concerning a referral to, and  
            participation in, any pretrial or posttrial diversion program,  
            nor shall any employer seek from any source whatsoever, or  
            utilize, as a factor in determining any condition of  
            employment including hiring, promotion, termination, or any  
            apprenticeship training program or any other training program  
            leading to employment, any record of arrest or detention that  
            did not result in conviction, or any record regarding a  
            referral to, and participation in, any pretrial or posttrial  
            diversion program.  


          10)Provides that the California Public Utilities Commission  
            (PUC) may fix rates and establish rules for the transportation  
            of passengers and property by transportation companies,  
            prohibit discrimination, and award reparation for the exaction  
            of unreasonable, excessive, or discriminatory charges. 


          11)Establishes the PUC's authority to regulate, require license  
            or permit to operate, require insurance and workers  
            compensation, take appropriate enforcement action and other  
            provisions related to passenger stage corporations and  
            transportation charter-party carriers.  


          12)Defines a "transportation network company" as "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."  









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          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, fully reimbursable cost in the $3.2 million range if  
          all TNCs request criminal background checks for about 100,000  
          employees and DOJ charges the usual $32 for background checks.  
          (Fingerprint Fees Account) 


          COMMENTS:  According to the author, "TNCs provide prearranged  
          transportation services for compensation using online-enabled  
          application or platform (such as smart phone apps) to connect  
          passengers with drivers using their personal vehicles.   
          Unfortunately, high-profile incidents have arisen, involving  
          drivers accused of assaulting, kidnapping, raping, harassing and  
          stealing from customers.  These incidents point to the need to  
          allow TNCs to request a DOJ background check.  By allowing TNC  
          to access DOJ criminal history databases,  AB 2777 gives TNCs  
          another tool in its toolbox to uncover criminal history not  
          discovered through traditional methods, prevent fraud and  
          enhance its goal of providing safe and reliable service."




          Analysis Prepared by:                                             
                          Sandy Uribe/ PUB. S. / (916) 319-3744  FN:  
          0003172